Which of the Following Situations Would Not Result in Auditors

question 8

Multiple Choice

Which of the following situations would not result in auditors adding an additional paragraph to their report without modifying the introductory,scope,or opinion paragraphs of that report?

• A) Reference to a change in the method of accounting mandated by the issuance of a new accounting standard.
• B) Reference to a going-concern uncertainty facing the client.
• C) Reference to a departure from GAAP that is material but not pervasive to the financial statements.
• D) Reference to an acquisition made by the client during the most recent fiscal year.

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Definitions:

Average Product

The output produced, on average, by each unit of a variable input, such as labor or capital, in the production process.

Total Product

Total product refers to the total quantity of output that a firm produces over a given period, typically in relation to varying levels of input.

Marginal Product

The additional output resulting from the use of one more unit of a production factor.

Unit Of Labor

A measurement of work or effort by labor forces, often referred to in terms of hours worked or the number of workers.