Which of the Following Is Correct Concerning Qualified Opinions,disclaimers of Opinions,and

question 11

Multiple Choice

Which of the following is correct concerning qualified opinions,disclaimers of opinions,and unaudited financial statements?

• A)When an auditor issues a qualified opinion regarding audited financial statements,the auditor is relieved of responsibility for mistakes in financial statements only to the extent the qualification is specifically expressed in the opinion letter.
• B)An auditor who,due to the limited scope of an audit,disclaims any opinion as to the ability of the financial statements to present the financial position of a company has no liability for misstatements or omissions in the financial statements.
• C)Opinion letters stating that an auditor totally disclaims his/her liability for false and misleading financial statements excuse an accountant from the duty to exercise ordinary skill and care.
• D)An auditor who prepares unaudited statements automatically creates a disclaimer as to the accuracy of those statements.

Explain the principle of vicarious performance and its relevance in contractual obligations.

Discuss the development and scope of the doctrine of privity in contract law and its exceptions.

Understand the concepts of chose in action, negotiable instrument, and their significance in contract law.

Understand the concept of an assignment and its application in modern business practices.

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Definitions:

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor of production.

Market Wage Rate

The prevailing rate of compensation offered for labor in a specific market or industry, determined by supply and demand.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or input, used in decision-making about resource allocation.

Price-Taker Market

A market scenario in which sellers accept the market price as given because they have no influence over it, often due to high competition and standardized products.