When the Auditor Determines That the Financial Statements Are Fairly

question 121

Multiple Choice

When the auditor determines that the financial statements are fairly stated, but there is a nonindependent relationship between the auditor and the client, the auditor should issue

• A) an adverse opinion.
• B) a disclaimer of opinion.
• C) either a qualified opinion or an adverse opinion.
• D) either a qualified opinion or an unqualified opinion with modified wording.

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Definitions:

Transverse

Acting in a crosswise direction; for example, an axle on a truck is transversely mounted. Used to describe components (transverse torque rod), positioning (transverse mounted engine), or forces acting on a chassis.

Longitudinal

Refers to something that is oriented or extends in the direction of the length of an object or an entity.

Semi-Oscillating

Pertaining to a movement that is partially rotational or vibrating, often used to describe components in mechanical systems.

Trailer Bolster Plate

A reinforced plate on a trailer designed to distribute load weight or attach components such as legs or wheels.