If the Auditors Obtains Sufficient Appropriate Evidence on the Entity's

question 5

Multiple Choice

If the auditors obtains sufficient appropriate evidence on the entity's accounts receivable balance by alternative procedures because it is impracticable to confirm accounts receivable,the opinion on the entity's financial statements should be unmodified and would

• A) disclose the fact that alternative procedures were used due to client-imposed scope limitation.
• B) disclose in the opinion paragraph that confirmation of accounts receivable was impracticable.
• C) not mention the alternative procedures.
• D) include an other-matter paragraph that discloses the performance of alternative procedures.

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Definitions:

Disparities

Inequities or differences, often unfair, observed between different groups of people.

Grants-In-Aid

Financial assistance provided by the federal government to state or local governments for specific projects or programs.

Deregulation

The process of removing or reducing government regulations from specific industries or sectors, often intended to increase efficiency and promote competition.

Mortgage Industry

Comprises companies and individuals involved in creating, servicing, and processing mortgages for residential and commercial properties, including lenders, mortgage brokers, and real estate professionals.