An Auditor Includes a Separate Paragraph in an Otherwise Unmodified

question 2

Multiple Choice

An auditor includes a separate paragraph in an otherwise unmodified report to emphasize that the entity being reported on had significant transactions with related parties. The inclusion of this separate paragraph

• A) Is considered an "except for" qualification of the opinion.
• B) Violates generally accepted auditing standards if this information is already disclosed in footnotes to the financial statements.
• C) Necessitates a revision of the opinion paragraph to include the phrase "with the foregoing explanation."
• D) Is appropriate and would not negate the unqualified/unmodified opinion.

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Definitions:

Arbitrator

A neutral third party selected to resolve a dispute between two or more parties in a binding manner outside of court.

Labour Disputes

Conflicts between employers and employees, typically over matters such as wages, working conditions, and union representation.

Mediator

A third party in an employment dispute who meets with one party and then the other to suggest compromise solutions or to recommend concessions from each side that will lead to an agreement.

Collective Agreements

Legal contracts between employers and a group of employees, often represented by a union, that outline the terms of employment.