Your Client, Blunt Ltd, Is Being Sued by One of Its

question 7

Multiple Choice

Your client, Blunt Ltd, is being sued by one of its competitors for $20 million for an alleged patent infringement.Your client has assets of $40 million and a reported profit of $10 million. The client has disclosed the lawsuit in a note to the accounts along with a statement indicating that they intend to vigorously defend the suit and are
Confident of winning the suit. Your independent legal advice supports this view and you are satisfied with the
Details provided by the client in the notes to the accounts. What type of opinion should you express on the
Financial report of Blunt Ltd?

• A) An unmodified opinion with an Emphasis of Matter.
• B) A disclaimer of opinion.
• C) An unmodified opinion.
• D) A qualified opinion or adverse opinion.

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Definitions:

Resting Potential

The electrical potential of a neuron when it is not active, representing the difference in charge between the inside and outside of the cell.

Axon Terminal

Bulbous end of the axon where signals move from the axon of one neuron to the dendrites or cell body of another.

Dendrites

The branched extensions of a neuron that receive signals from other neurons or sensory receptors and convey them toward the cell body.

Synapse

The junction between two neurons or between a neuron and a muscle cell, where electrical or chemical signals are transmitted from one cell to another.