Under Which of the Following Set of Circumstances Might the Auditors

question 40

Multiple Choice

Under which of the following set of circumstances might the auditors disclaim an opinion?

• A)The financial statements contain a departure from generally accepted accounting principles, the effect of which is material
• B)There is a client scope restriction that precludes the auditors' compliance with generally accepted auditing standards
• C)There has been a material change between periods in the method of the application of accounting principles
• D)Differences with management that lead to trust issues on the part of the auditor

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Definitions:

Progressiveness

A political or social philosophy advocating or implementing social reform or new, liberal ideas.

Tax Revenue

The income that is gained by governments through taxation, forming a significant part of their funding for public expenditures.

Elastic Demand

A situation where the quantity demanded of a good or service changes significantly in response to price changes.

Inelastic Supply

A supply condition where quantity supplied does not change significantly when there is a change in price.