Your Client, Sharpe Ltd, Is Being Sued by One of Its

question 8

Multiple Choice

Your client, Sharpe Ltd, is being sued by one of its competitors for $40 million for an alleged patent infringement.Your client has assets of $80 million and a reported profit of $20 million.The client has disclosed the lawsuit in a note to the accounts along with a statement indicating that they intend to vigorously defend the suit and are confident of winning the suit.Your independent legal advice supports this view and you are satisfied with the details provided by the client in the notes to the accounts.What type of opinion should you express on the financial report of Sharpe Ltd?

• A)An unmodified opinion with an Emphasis of Matter.
• B)A disclaimer of opinion.
• C)An unmodified opinion.
• D)A qualified opinion or adverse opinion.

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Definitions:

Spanked

Struck on the buttocks with an open hand or object as a form of punishment.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, triggers a conditioned response.

Unconditioned Stimulus

A stimulus that naturally triggers a response without any prior learning.

Adventuresome 2-year-old

Describes the typical behavior of two-year-olds exhibiting curiosity and a desire to explore their surroundings, often leading to increasing independence and physical activity.