Which of the Following Situations Would Not Result in Auditors

question 47

Multiple Choice

Which of the following situations would not result in auditors adding an additional paragraph to their report without modifying the introductory,scope,or opinion paragraphs of that report?

• A)Reference to a change in the method of accounting mandated by the issuance of a new accounting standard.
• B)Reference to a going-concern uncertainty facing the entity.
• C)Reference to a departure from GAAP that is material,but not pervasive,to the financial statements.
• D)Reference to an acquisition made by the entity during the most recent fiscal year.

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Definitions:

Competitive Advantage

The unique attributes or capabilities that allow a company to outperform its competitors, including superior products, services, processes, or technologies.

Customer Retention

The activities and actions companies and organizations take to reduce the number of customer defections and to encourage loyalty among existing customers.

Long-Term Profits

The sustained earnings a company generates over an extended period, indicating its financial health and stability.

Product Excellence

Involves a focus on achieving high-quality products; effective branding and positioning is key.