Which of the Following Guidelines Should Be Followed When a Disclaimer

question 17

Multiple Choice

Which of the following guidelines should be followed when a disclaimer of opinion is issued?

• A)The report should identify the financial statements accompanying the disclaimer of opinion.
• B)The report should be addressed to the client and specific users who originally retained the auditors.
• C)If the disclaimer is due to a lack of independence,the report should indicate the specific reasons for the auditors not being independent.
• D)The report should include a reference to any auditing procedures performed prior to issuing the disclaimer.

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Definitions:

Ward's Capacity

The legal competence or ability of a ward (a person under the protection of a legal guardian) to act in their own interests.

Guardian with Full Powers

An individual appointed by the court to have complete responsibility for the personal and/or financial matters of a minor or legally incapacitated person.

Voidable Policy

A contract or insurance policy that can be declared invalid by one of the participating parties due to certain conditions not being met or misrepresented.

Station in Life

A term referring to one's social position or status, often considered in legal contexts to assess appropriateness of actions or compensation.