An Entity Operates in a Highly Regulated Industry with Special

question 29

Multiple Choice

An entity operates in a highly regulated industry with special, legislated reporting requirements, with which it has complied. However, this has resulted in it not complying with the requirements of some Australian Accounting
Standards. Note 1 to the accounts states that the accounts are prepared in conformity with both the special legislated
Reporting requirements and the Australian Accounting Standards. What type of audit opinion should be issued?

• A) An adverse opinion.
• B) A qualified opinion.
• C) An unmodified opinion with regards the special legislation and a qualified opinion with regards the departure from Australian Accounting Standards.
• D) An unmodified opinion with an Emphasis of Matter paragraph.

---

Definitions:

Annual Compounding

Determining annual interest by taking into account both the initial amount invested and the interest it has generated in the past.

Compounded Monthly

The calculation of interest using the principal sum along with its accrued interest, with this process happening every month.

Investment

Disbursing funds or other assets with the aim of earning returns or profits.

Average Annual Rate

A financial term indicating the average amount of interest earned or paid per year over the life of an investment or loan.