During a Review of the Financial Statements of a Nonpublic

question 20

Multiple Choice

During a review of the financial statements of a nonpublic entity, an accountant becomes aware of inadequate disclosure that is material to the financial statements. If management refuses to correct the financial statement presentations, the accountant should

• A) Issue an adverse opinion.
• B) Issue an "except for" qualified opinion.
• C) Disclose this departure from generally accepted accounting principles in a separate paragraph of the report.
• D) Express only limited assurance on the financial statement presentations.

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Definitions:

Amygdala

A component of the brain's limbic system involved in emotion regulation, memory, and decision-making.

Schizophrenia

A chronic and severe mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Prefrontal Cortex

The anterior part of the frontal lobes of the brain, involved in complex behaviors, decision making, and moderating social behavior.

Social Drift

A theory suggesting individuals with severe mental illness may move to lower socio-economic groups due to the costs or consequences of their illness.