In Which of the Following Circumstances Would a Qualified Opinion

question 100

Multiple Choice

In which of the following circumstances would a qualified opinion not be appropriate?

• A)A scope limitation prevents the auditors from completing an important auditing procedure.
• B)The entity has failed to properly disclose going-concern uncertainties.
• C)An accounting principle at variance with generally accepted accounting principles is used.
• D)The auditors lack independence with respect to the audited entity.

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Definitions:

Analyze Transaction

The process of reviewing and breaking down a financial transaction to understand its impact on the accounting equation.

Trial Balance

A bookkeeping worksheet listing the balances of all ledgers in two columns, debits and credits, to verify that the total debits equal total credits.

Income Statement

A financial document that reports a company's financial performance over a specific accounting period, detailing revenue, expenses, and profit.

Ledger

A book or collection of accounts in which transactions are recorded, categorized, and summarized.