In Which of the Following Circumstances Would Auditors Be Most

question 86

Multiple Choice

In which of the following circumstances would auditors be most likely to express an adverse opinion?

• A) The chief executive officer refuses to provide the auditors access to minutes of the board of directors' meetings.
• B) Tests of controls show that the entity's internal control is so ineffective that it cannot be relied upon.
• C) The financial statements are not in conformity with generally accepted accounting principles regarding the capitalization of leases.
• D) Information comes to the auditors' attention that raises substantial doubt about the entity's ability to continue as a going concern.

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Definitions:

Blended Family

A family unit where one or both partners have children from previous relationships, blending families together.

Custodial Parent

The parent awarded the majority of time and responsibility for a child by a court of law following a separation or divorce.

Stepparent

An individual who is married to a person with children from a previous relationship and who may take on parental responsibilities for those children.

Emotional Outbursts

Sudden, intense expressions of emotion, such as anger or frustration, that can be difficult to control.