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:

People's Republic

A term used to describe a state that is officially governed by the people or their elected representatives, often used by communist countries.

Salvador Allende

The first Marxist to become president of a Latin American country through open elections, serving as President of Chile from 1970 until his death in 1973.

Augusto Pinochet

A Chilean general and dictator who led a military coup in 1973, overthrowing President Salvador Allende and ruling the country until 1990, known for human rights abuses.

Socialist President

A president who follows or promotes socialist ideologies, aiming for a more equitable distribution of resources and wealth across society.