During an Engagement to Review the Financial Statements of a Nonpublic

question 33

Multiple Choice

During an engagement to review the financial statements of a nonpublic entity, an accountant becomes aware of a material departure from GAAP. If the accountant decides to modify the standard review report because management will not revise the financial statements, the accountant should

• A) Express negative assurance on the accounting principles that do not conform with GAAP.
• B) Disclose the departure from GAAP in a separate paragraph of the report.
• C) Issue an adverse or an "except for" qualified opinion, depending on materiality.
• D) Express positive assurance on the accounting principles that conform with GAAP.

Understand the basic principles and types of Alternative Dispute Resolution (ADR) including arbitration and mediation.

Identify the enforceability of arbitration clauses in various contexts, including employment and consumer contracts.

Differentiate between mediation and arbitration and understand situations where each is applicable.

Recognize the limitations and criticisms of arbitration.

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Definitions:

Ounce

A unit of weight in the US customary and British imperial systems, equal to 1/16 of a pound or approximately 28.35 grams.

Milligram

A mass unit that is equivalent to 0.001 of a gram.

Gram

An expression of mass measuring exactly one thousandth of a kilogram.

Milligram

A unit of mass equal to one thousandth of a gram, used in the metric system.