At the End of the Audit the Auditor Has Two

question 18

Multiple Choice

At the end of the audit the auditor has two issues outstanding. The first is a disagreement with those charged with governance concerning the use of an inappropriate valuation method for inventory (LIFO) . The second issue is
Significant uncertainty as to whether the entity will continue as a going concern, which is adequately disclosed in
The notes to the accounts. What type of audit opinion should the auditor express?

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

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Definitions:

Marginal Cost

The increase in total production cost that comes from making or producing one extra item.

Production Function

Refers to the relationship between input resources (like labor, land, and capital) and the output produced by these resources.

Marginal Product Of Labor

The additional output a firm gains from employing one more unit of labor, holding all other inputs constant.

Demand For Labor

The total amount of workers that employers want to hire at a given wage rate and time period.