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:

Cerebrum

The largest part of the brain, responsible for voluntary muscular activity, vision, speech, taste, hearing, thought, and memory.

Biologically Determined

Refers to traits, behaviors, or conditions that are influenced by genetic, anatomical, or physiological factors rather than environmental ones.

Instincts

Inborn behavioral patterns that are biologically determined rather than learned, guiding responses to environmental stimuli.

Vasoconstriction

The narrowing of blood vessels, which decreases blood flow and increases blood pressure, often as a response to cold temperatures or stress.