An Auditor Concludes That There Is a Material Inconsistency in the Other

question 51

Multiple Choice

An auditor concludes that there is a material inconsistency in the other information in an annual report to shareholders containing an audited financial report.If the auditor concludes that the financial report does not require revision (it is the other information which is inconsistent with the auditor's knowledge) but the client refuses to revise or eliminate the material inconsistency, the auditor may:

• A)issue a qualified opinion after discussing the matter with the client's board of directors.
• B)consider the matter closed since the other information is not in the audited financial report.
• C)revise the auditor's report to include an Emphasis of Matter paragraph describing the material inconsistency.
• D)revise the auditor's report to include an Other Matter paragraph describing the material inconsistency.

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Definitions:

The Swing

A famous Rococo painting by Jean-Honoré Fragonard, depicting a young woman swinging while being watched by her lover, embodying the playful and sensual style of the period.

Rococo

An 18th-century artistic movement and style, originating in France, characterized by elaborate ornamentation, asymmetrical values, pastel color palette, and themes of love, nature, and light-heartedness.

Fragonard

Jean-Honoré Fragonard was a French painter whose works are emblematic of the Rococo style, known for its playful, sensuous expression.

Jean-Jacques Rousseau

A Genevan philosopher, writer, and composer of the 18th century, whose ideas influenced the Enlightenment across Europe, as well as aspects of the French Revolution.