As a Result of Management's Refusal to Permit the Auditor

question 82

Multiple Choice

As a result of management's refusal to permit the auditor to physically examine inventory, the auditor must depart from the unqualified audit report because:

• A)the financial statements have not been prepared in accordance with GAAP.
• B)the scope of the audit has been restricted by circumstances beyond either the client's or auditor's control.
• C)the financial statements have not been audited in accordance with GAAS.
• D)the scope of the audit has been restricted.

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Definitions:

Waving the Bloody Shirt

A phrase used to describe the use of the memory or image of war and its casualties by politicians to criticize opponents or rally support, originally associated with post-Civil War U.S. politics.

Civil War Animosities

Hostility and resentment that lingered between the Northern and Southern United States after the Civil War, affecting the country's social and political landscape.