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

question 2

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 require revision, but the client refuses to revise or eliminate the material inconsistency, the auditor may:

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

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Definitions:

Main Pressure

The primary or leading pressure within a system, often referring to hydraulic or fluid pressure in machinery.

Hydromechanical Transmission

A type of transmission that combines hydraulic and mechanical systems to transfer power from the engine to the wheels of a vehicle.

Oil Pump

A component in an engine that circulates oil under pressure to the rotating bearings, sliding pistons, and camshaft of the engine to lubricate the parts.

Torque Converter

A fluid coupling used to transfer rotating power from an engine to the transmission in vehicles.