If the Auditor Believes That There Is Minimal Likelihood That

question 50

Multiple Choice

If the auditor believes that there is minimal likelihood that resolution of an uncertainty will have a material effect on the financial report, the auditor would issue a(n) :

• A)adverse opinion.
• B)qualified opinion.
• C)disclaimer of opinion.
• D)unmodified opinion.

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Definitions:

Crowding Out

The phenomenon where increased government spending leads to a reduction in private sector investment or spending due to higher interest rates or other factors.

Budget Deficit

A budget deficit occurs when a government's expenditures exceed its revenues during a specific period, leading to the need for borrowing or using saved reserves.

Loanable Funds

The market where savers supply funds to borrowers, influencing interest rates and investment activities.

Crowding Out

A situation in economics where increased public sector spending reduces or eliminates private sector spending.