Restrictions Imposed by an Entity Prohibited the Auditors' Observation of Physical

question 36

Multiple Choice

Restrictions imposed by an entity prohibited the auditors' observation of physical inventories,which accounted for 35% of total assets.Alternative auditing procedures were not feasible,although the auditors were able to examine satisfactory evidence for all other items in the financial statements.The auditors would most likely express

• A) A qualified opinion on the entity's financial statements, referring to a departure from generally accepted accounting principles.
• B) A disclaimer of opinion on the entity's financial statements.
• C) An unqualified opinion on the entity's financial statements with a separate explanatory paragraph.
• D) An unqualified opinion on the entity's financial statements with a modification of the scope paragraph.

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Definitions:

1942

A year notable for events in World War II, including the Battle of Midway and the internment of Japanese Americans.

DSM-IV-TR

The Diagnostic and Statistical Manual of Mental Disorders, Fourth Edition, Text Revision; a manual published by the American Psychiatric Association detailing diagnostic criteria for mental disorders.

Disruptive Behavior Patterns

Actions or sequences of actions that interrupt the normal flow or functioning of a social or operational system.

Significant Behavior Patterns

Regularly occurring actions or reactions that have importance in predicting or understanding an individual's behavior.