During a Review of the Financial Report of a Non-Reporting

question 37

Multiple Choice

During a review of the financial report of a non-reporting entity an assurance provider becomes aware of a lack of adequate disclosure that is material and pervasive to the financial report and results in it being misleading. If management refuses to correct the financial report presentations, the assurance provider should:

• A) express only limited assurance on the financial report presentations.
• B) disclose this departure from accounting standards in a separate paragraph of the report.
• C) issue an adverse opinion.
• D) issue an 'except for' opinion.

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Definitions:

Scientific Method

A systematic approach to research and experimentation characterized by observation, hypothesis formulation, experimentation, and conclusions.

Observing Some Phenomenon

The act of carefully watching, tracking, or analyzing an occurrence, event, or thing to gather data and draw conclusions.

Scientific Method

A systematic and logical approach to discovering how things in the universe work, involving observation, hypothesis formulation, experimentation, and conclusion.

Case Studies

In-depth analyses of a single event, situation, or individual to explore and understand underlying principles or phenomena.