Under Which of the Following Circumstances Would a Disclaimer of Opinion

question 14

Multiple Choice

Under which of the following circumstances would a disclaimer of opinion on the entity's financial statements not be appropriate?

• A)The financial statements fail to contain adequate disclosure of related-party transactions.
• B)The entity refuses to permit its attorney to furnish information requested in an attorney letter.
• C)The auditors are engaged after the date of the financial statements and are unable to observe physical inventories or apply alternative procedures to verify their balances.
• D)The auditors are unable to determine the amounts associated with illegal acts committed by the entity's management.

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Definitions:

SA Node

The sinoatrial node, a group of cells in the right atrium of the heart that acts as a natural pacemaker by initiating the heart's electrical impulses.

Purkinje Fibers

Specialized conducting fibers located in the heart's ventricles that help regulate the heart's rhythm.

Heart Skeleton

Fibrous connective tissue that provides a point of attachment for cardiac muscle cells, electrically insulates the atria from the ventricles, and forms the fibrous rings around the valves.

Electrical Insulation

Materials or systems that prevent the passage of electrical current, used to protect, isolate, and contain electrical conductors.