Your Client Has Followed Approved Accounting Standards but a Note

question 34

Multiple Choice

Your client has followed approved accounting standards but a note to the financial report indicates that the application of certain standards results in the financial report being materially misstated.The note details the reasons for this view.You do not concur with this view.What type of opinion should you issue?

• 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.

---

Definitions:

Creditor Attempts

Efforts made by creditors to collect debts owed to them, which can include legal actions, settlement negotiations, or other collection activities.

Bargained-For Exchange

An agreement between parties where each receives something of value in exchange for something else.

Nominal Consideration

A minimal amount given in a contract that is not calculated by the actual value of the transaction but is symbolic, to make the agreement legally binding.

Moral Obligations

Ethical duties that a person feels compelled to perform based on personal beliefs about right and wrong, despite not being enforceable by law.