The Auditors Conclude That an Entity's Illegal Act,which Has a Material

question 66

Multiple Choice

The auditors conclude that an entity's illegal act,which has a material effect on the financial statements,has not been properly accounted for or disclosed.Depending on the overall materiality and pervasiveness of the effect of this illegal act on the financial statements,the auditors should express either a(n)

• A)Adverse opinion or a disclaimer of opinion.
• B)Qualified opinion or an adverse opinion.
• C)Disclaimer of opinion or an unmodified opinion with a separate emphasis-of-matter paragraph.
• D)Unmodified opinion with a separate emphasis-of-matter paragraph or a qualified opinion.

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Definitions:

Literature Review

A comprehensive survey of scholarly articles, books, and other sources on a specific topic, aiming to summarize and synthesize the existing research.

Intuitions

The ability to understand something instinctively, without the need for conscious reasoning.

Stability

Refers to the characteristics, traits, or states that remain consistent over time and across situations.

Personality Traits

Enduring characteristics or tendencies that influence an individual's behavior across various situations.