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:

Consumers

Individuals or groups who use goods and services produced within an economy.

Producers

Producers are individuals or entities that create goods or services for sale or exchange, typically within an economy.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach to determine exchange rate effects on goods' prices.

Exchange Rate

The value of one currency for the purpose of conversion to another, indicating how much of one currency can be exchanged for one unit of another currency.