When Auditors Are Engaged to Examine an Entity's Financial Statements

question 54

Multiple Choice

When auditors are engaged to examine an entity's financial statements but decide to issue a disclaimer of opinion,the report would not

• A) Identify management's responsibility for the financial statements.
• B) Refer to any scope limitation in an additional paragraph.
• C) Modify the scope paragraph to identify the basis for the disclaimer.
• D) Indicate that the auditors were engaged to audit the financial statements.

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Definitions:

Manager

An individual responsible for controlling or administering all or part of a company or similar organization.

Reward Power

The capacity to offer something of value as a means to influence the behavior of others.

Influence

The capacity to have an effect on the behavior, development, or character of someone or something.

Value

The importance, worth, or usefulness of something, often determining its desirability or the principles held by individuals or organizations.