In Which of the Following Circumstances Would Auditors Most Likely

question 33

Multiple Choice

In which of the following circumstances would auditors most likely add an emphasis-of-matter paragraph to the standard (unmodified) report without modifying the opinion on the entity's financial statements?

• A)The auditors are asked to report on the balance sheet,but not on the other basic financial statements.
• B)There is substantial doubt about the entity's ability to continue as a going concern.
• C)Management's estimates of the effects of future events on the entity's financial condition,results of operations,and cash flows are unreasonable.
• D)Certain transactions cannot be tested because of management's records retention policy.

---

Definitions:

Testosterone

A steroid hormone primarily produced in the testes of males and the ovaries of females, influential in the development of male secondary sexual characteristics.

Genitalia

External and internal reproductive organs.

Fetuses

A developmental stage of mammals, including humans, in the uterus from the embryonic stage until birth.

Light

Electromagnetic radiation that is visible to the human eye, and is responsible for the sense of sight.