If the Auditor Obtains Sufficient Competent Evidence on the Client's

question 79

Multiple Choice

If the auditor obtains sufficient competent evidence on the client's accounts receivable balance by alternative procedures because it is impractical to confirm accounts receivable,the auditor's opinion should be unqualified and could be expected to

• A) Disclose the fact that alternative procedures were used due to client-imposed scope limitation.
• B) Disclose in the opinion paragraph that confirmation of accounts receivable was impracticable.
• C) Avoid mentioning the alternative procedures.
• D) Include an explanatory paragraph that discloses the performance of alternative procedures.

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Definitions:

Portfolio B

This could refer to a specific investment portfolio identified by the letter "B," often as part of a series or classification of portfolios managed by an investment firm or individual.

Stock Price

The cost of purchasing a single share of a company, fluctuating based on supply and demand in the market.

Strike Price

The set price at which an option's owner has the right to purchase (for a call option) or sell (for a put option) the underlying asset.

Stock Call Option

A financial derivative that gives the buyer the right, but not the obligation, to buy a specific stock at a predetermined price within a set period.