If the Auditor Believes That There Is Minimal Likelihood That

question 50

Multiple Choice

If the auditor believes that there is minimal likelihood that resolution of an uncertainty will have a material effect on the financial report, the auditor would issue a(n) :

• A)adverse opinion.
• B)qualified opinion.
• C)disclaimer of opinion.
• D)unmodified opinion.

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Definitions:

CCA Class

Pertains to a classification system for tax purposes, grouping assets with similar characteristics for capital cost allowance claims in Canada.

Net Present Value

Net present value is a financial metric that calculates the value of a series of cash flows by discounting them back to their present value using a specific rate.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and not expected to be converted into cash in the short term, like buildings, machinery, and land.

Tax Shield Approach

A method of reducing taxable income through allowable deductions such as depreciation, resulting in lower tax payments.