Under Which of the Following Set of Circumstances Might an Auditor

question 38

Multiple Choice

Under which of the following set of circumstances might an auditor disclaim an opinion?

• A) There are significant uncertainties affecting the financial report.
• B) There has been a material change between periods in the method of the application of accounting principles
• C) The principal auditor decides to make reference to the report of another auditor who disclaimed an opinion on
• The audit of a subsidiary. The subsidiary contributed six per cent of operating revenue and profit but very little
• In other aspects.
• D) The financial report contains a departure from generally accepted accounting principles, the effect of which is material.

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Definitions:

Caroline's Casual Clothing

A fictitious name that might be used to represent a business specializing in comfortable and casual apparel for consumers.

Lower-Priced Option

An affordable alternative that is offered at a lower price compared to other variants or competitors, aiming to attract budget-conscious consumers.

Institutional Buyers

Entities that purchase goods and services in large quantities for organizational use, such as schools, hospitals, and government agencies.

Religious Organizations

Groups or institutions dedicated to the practice and propagation of religious beliefs.