The Fourth PCAOB Reporting Standard Requires the Auditor's Report to Contain

question 48

Multiple Choice

The fourth PCAOB reporting standard requires the auditor's report to contain either an expression of opinion regarding the financial statements taken as a whole or an assertion to the effect that an opinion cannot be expressed.The objective of the fourth standard is to prevent

• A) An auditor from reporting on one basic financial statement and not the others.
• B) An auditor from expressing different opinions on each of the basic financial statements.
• C) Management from reducing its final responsibility for the basic financial statements.
• D) Misinterpretations regarding the degree of responsibility the auditor is assuming.

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Definitions:

Existential Generalization

A logical inference rule stating that if some predicate holds for at least one thing, then there exists something for which that predicate holds.

Universal Instantiation

A logical rule of inference that allows for the deduction of specific instances from a universally quantified statement.

Existential Instantiation

A logical principle where from a general statement, one can infer the existence of at least one particular instance.

Universal Generalization

Universal generalization is a logical principle that allows one to infer that something is true for all members of a class from its being true for every observed member.