Taylor Ltd Has Disclosed the Fact That They Are Being

question 22

Multiple Choice

Taylor Ltd has disclosed the fact that they are being sued for $1 million. Taylor Ltd reported a profit for the year of $10 million and has total assets of $15 million. You conclude that disclosure of the litigation is adequate. What
Type of opinion should you express on the financial report of Taylor Ltd?

• A) Disclaimer of opinion.
• B) Unmodified opinion with an Emphasis of Matter.
• C) Unmodified opinion.
• D) Qualified opinion or adverse opinion.

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Definitions:

Common Shares

Securities representing ownership in a corporation, providing voting rights and entitling holders to a share of the company's success through dividends and appreciation.

Hyper-Inflationary

Refers to an economic situation characterized by extremely high and typically accelerating inflation rates, leading to a rapid erosion of the currency's value.

IAS 29

An International Accounting Standard that deals with financial reporting in hyperinflationary economies, requiring financial statements to be adjusted for changes in purchasing power.

Financial Reporting

The method of generating reports that reveal the financial condition of a company to its management, investors, and governmental bodies.