In the First Audit of an Entity, Because of the Entity's

question 32

Multiple Choice

In the first audit of an entity, because of the entity's record retention policies, an auditor was not able to gather sufficient evidence about the consistent application of accounting principles between the current and the prior year, as well as the amounts of assets or liabilities at the beginning of the current year. If the amounts in question could materially affect current operating results, the auditor would:

• A)be unable to express an opinion on the current year's results of operations and cash flows.
• B)express a qualified opinion on the financial statements because of a client-imposed scope limitation.
• C)withdraw from the engagement and refuse to be associated with the financial statements.
• D)specifically state that the financial statements are not comparable to the prior year because of an uncertainty.

---

Definitions:

Neurocognitive Disorder

A general term that describes decreased mental function due to a medical disease, other than a psychiatric illness.

Institutionalization

The process of becoming adapted to or dependent on living in an institutional setting, such as a hospital, prison, or residential care.

Home Care

A range of healthcare and supportive services provided in an individual's home to treat an illness or injury.

Neurocognitive Disorders

A group of psychological disorders mainly impacting cognitive functions such as perception, memory, learning, and the ability to solve problems.