When Auditors Lack Independence, Which of the Following Is True

question 127

Multiple Choice

When auditors lack independence, which of the following is true about the report on the entity's financial statements that should be issued?

• A)The auditors should disclaim an opinion and should state specifically that they are not independent.
• B)The auditors should disclaim an opinion but not mention that they are not independent.
• C)The auditors should issue an unmodified opinion with an other-matter paragraph stating that they are not independent.
• D)The auditors should issue a qualified opinion with an other-matter paragraph stating that they are not independent.

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Definitions:

Hormones

Biochemical substances produced by various glands in the body that regulate and control bodily functions and behavior by circulating in the bloodstream.

Adrenal Glands

Glands at the top of each kidney that are responsible for regulating moods, energy level, and the ability to cope with stress.

Epinephrine

Also known as adrenaline, it is a hormone and neurotransmitter involved in the body's fight-or-flight response.

Norepinephrine

A neurotransmitter and hormone involved in the body's fight or flight response, influencing blood pressure, heart rate, and glucose metabolism.