At the End of the Audit the Auditor Has Two

question 22

Multiple Choice

At the end of the audit the auditor has two issues outstanding.The first is a disagreement with those charged with governance concerning the use of an inappropriate valuation method for inventory (LIFO) .The second issue is significant uncertainty as to whether the entity will continue as a going concern, which is adequately disclosed in the notes to the accounts.What type of audit opinion should the auditor express?

• A)Qualified opinion with a Material Uncertainty Related to Going Concern paragraph..
• B)Unmodified opinion.
• C)Qualified opinion.
• D)Unmodified opinion with a Material Uncertainty Related to Going Concern paragraph.

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Definitions:

Output

The total amount of goods and services produced by an economy, a sector, or a business over a specific period of time.

Economic Profit

The difference between the firm’s total revenues and its total costs, including both the explicit and implicit cost components.

Economic Losses

Occur when a company's total costs exceed its total revenues, leading to negative profitability.

Break Even

The point at which total costs and total revenue are equal, resulting in no net gain or loss for a business.