In Which of the Following Circumstances May Auditors Issue the Standard

question 65

Multiple Choice

In which of the following circumstances may auditors issue the standard (unmodified) report on the entity's financial statements?

• A)The entity changed accounting principles having an immaterial effect on the entity's financial position, results of operations, and cash flows.
• B)The auditors wish to emphasize a matter regarding the financial statements.
• C)The auditors reference component auditors who examined a subsidiary of group financial statements.
• D)The auditors have not been able to audit a substantial portion of the balance sheet because of a circumstance-imposed scope limitation.

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Definitions:

Social Learning Theory

A theory that proposes people learn new behaviors through observation and imitation of others, reinforced by external rewards or punishments.

Intermittent Reinforcement

A conditioning schedule where reinforcements are given on a partial or unpredictable basis, significantly affecting learning and behavior persistence.

Continuous Reinforcement

Continuous reinforcement is a learning strategy where a desired behavior is rewarded every time it occurs, leading to quicker learning of the behavior.

Observable Behavior

Actions or conduct that can be seen and measured externally, as opposed to thoughts or feelings that cannot be directly observed.