When Auditors Qualify Their Opinion on the Entity's Financial Statements

question 39

Multiple Choice

When auditors qualify their opinion on the entity's financial statements because of inadequate disclosure,the auditors should describe the nature of the omission in an additional paragraph and modify

• A) the introductory paragraph and Auditor's Responsibility sections.
• B) the introductory paragraph only.
• C) the Auditor's Responsibility section only.
• D) neither the introductory paragraph nor Auditor's Responsibility section.

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Definitions:

Two-Column Journal

A form of journal in which there are only two amount columns, one for debits and one for credits.

Unadjusted Trial Balance

A listing of all the accounts in the general ledger with their balances before any adjustments are made.

Net Income

The net income of a business following the deduction of all costs and tax obligations from its total revenue.

Unadjusted Trial Balance

A listing of all the accounts and their balances from a company's general ledger before any adjusting entries are made for accounting purposes.