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:

Pyramid

A monumental structure with a square or triangular base and sloping sides that meet in a point at the top, historically used as tombs in ancient civilizations, notably Egypt.

Mastaba

Arabic, “bench.” An ancient Egyptian rectangular brick or stone structure with sloping sides erected over a subterranean tomb chamber connected with the outside by a shaft.

Egyptian Temples

Religious structures in ancient Egypt, constructed to serve as homes for the gods or goddesses, with architectural features designed for worship and processions.

Building Technique

Methods and processes used in the construction of structures, from ancient to modern practices, including materials, structural support, and design principles.