When Are an Auditor's Reporting Responsibilities Not Met by Attaching

question 28

Multiple Choice

When are an auditor's reporting responsibilities not met by attaching an explanation of the circumstances and a disclaimer of opinion to the entity's financial statement?

• A)When the independent auditor with sufficient appropriate evidence believes the financial statements are not prepared in accordance with GAAP.
• B)When the auditor was unable to observe the taking of the physical inventory.
• C)When the auditor is not independent.
• D)When the auditor has performed insufficient auditing procedures to express an opinion.

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Definitions:

Diagnostic

Pertaining to the identification of the nature or cause of a health problem, often through evaluation of symptoms and tests.

Statistical

Pertaining to the use of statistics or the methodology of collecting, analyzing, interpreting, and presenting numerical data.

Clusters

Groups or collections of similar things or people, often identified through certain algorithms or criteria.

Dramatic

Pertaining to drama or performance, or characterized by emotional, exciting, or unexpected events or circumstances.