An Entity Is Facing Significant Litigation as a Result of Dumping

question 17

Multiple Choice

An entity is facing significant litigation as a result of dumping oil in the ocean.This is adequately disclosed in the notes to the financial report.The appropriate auditor's report is:

• A)a qualified opinion.
• B)an unmodified opinion with an Other Matter paragraph.
• C)an adverse opinion.
• D)an unmodified opinion with an Emphasis of Matter paragraph.

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Definitions:

Significance Level

The threshold under which a result of a statistical test is considered statistically significant, often denoted by alpha (α).

Independent Variable

A variable that is manipulated to observe its effect on a dependent variable, considered the cause in cause-and-effect relationships.

Positive and Significant

A description of statistical results indicating that an effect or difference is both greater than zero and statistically unlikely to be due to chance alone.

Significance Level

A statistical measure that determines the threshold of rejecting the null hypothesis, typically represented by alpha (α), such as 0.05 (5%).