Which of the Following Statements with Respect to the Auditor's

question 44

Multiple Choice

Which of the following statements with respect to the auditor's report providing an opinion on a specific item on a financial report is correct?

• A)Such a report can only be provided if the auditor is also engaged to audit the entire financial report.
• B)Materiality must be related to the specified item rather than to the financial report taken as a whole.
• C)The auditor who has issued an adverse opinion on the financial report taken as a whole can never express an opinion on a specified item in that financial report.
• D)The attention devoted to the specific item is usually less than it would be if the financial report taken as a whole were being audited.

---

Definitions:

Purchasing

The act of acquiring goods or services, often for business purposes, to fulfill the needs of an organization or individual.

Procurement

The process of obtaining goods, services, or works from an external source, often via a tendering or competitive bidding process.

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.

Organizational Success

The achievement of the set goals and objectives of an organization, often measured by financial performance, market share, and other key indicators.