An Auditor Concludes That There Is a Material Inconsistency in the Other

question 42

Multiple Choice

An auditor concludes that there is a material inconsistency in the other information in an annual report to shareholders containing audited financial statements. If the auditor concludes that the financial statements do not require revision
(it is the other information which is inconsistent with the auditor's knowledge) , but the client refuses to revise or
Eliminate the material inconsistency, the auditor may:

• A) issue a qualified opinion after discussing the matter with the client's board of directors.
• B) consider the matter closed since the other information is not in the audited financial statements.
• C) revise the auditor's report to include an Emphasis of Matter paragraph describing the material inconsistency.
• D) revise the auditor's report to include an Other Matter paragraph describing the material inconsistency.

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Definitions:

Minds

Refers to the aspects of intellect and consciousness experienced as combinations of thought, perception, memory, emotion, will, and imagination.

Anthropomorphism

The attribution of human traits, emotions, or intentions to non-human entities.

Embarrassed

A feeling of self-consciousness, shame, or awkwardness that arises from a situation that exposes one's shortcomings or social faux pas.

Dog Sweater

A piece of clothing designed to keep dogs warm, often used in colder climates or for breeds with less natural insulation.