An Auditor Concludes That There Is a Material Inconsistency in the Other

question 52

Multiple Choice

An auditor concludes that there is a material inconsistency in the other information in an annual report to shareholders containing audited financial statements. If the auditor concludes that the financial statements do not require revision, but the entity refuses to revise or eliminate the material inconsistency, the auditor may

• A) Issue an "except for" qualified opinion after discussing the matter with the entity's board of directors.
• B) Consider the matter closed since the other information is not in the audited financial statements.
• C) Disclaim an opinion on the financial statements after explaining the material inconsistency in a separate explanatory/emphasis-of-matter paragraph.
• D) Revise the auditor's report to include a separate explanatory/emphasis-of- matter paragraph describing the material inconsistency.

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Definitions:

Decline

A decrease in quality, quantity, or importance of something over time.

Physical Health

A state of physical well-being in which an individual is mechanically fit to perform their daily activities without restrictions.

Exercise Program

A structured routine of physical activities designed to improve health or fitness.

Running

A form of cardiovascular exercise involving rapid foot movement to cover distance, beneficial for physical and mental health.