When the Client Fails to Make Adequate Disclosure in the Body

question 112

Multiple Choice

When the client fails to make adequate disclosure in the body of the statements or in the related footnotes, it is the responsibility of the auditor to

• A) inform the reader that disclosure is not adequate, and to issue an adverse opinion.
• B) inform the reader that disclosure is not adequate, and to issue a qualified opinion.
• C) present the information in the audit report and issue an unqualified or qualified opinion.
• D) present the information in the audit report and to issue a qualified or an adverse opinion.

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Definitions:

Dialogue

A conversation or exchange of ideas aimed at reaching understanding, resolving differences, or exploring possibilities.

Competitive Strategy

A method or plan chosen to bring about a desired future, such as achieving a competitive advantage in the market or industry.

Substance Outcomes

The tangible and measurable results achieved following a negotiation or decision-making process.

Relationship Outcomes

The effects or consequences of interactions and negotiations on the interpersonal relationships between the involved parties.