The Auditors Include an Emphasis-Of-Matter Paragraph in Report with an Unmodified

question 9

Multiple Choice

The auditors include an emphasis-of-matter paragraph in report with an unmodified opinion in order to emphasize that the entity being reported upon is a subsidiary of another business enterprise.The inclusion of this paragraph:

• A)Is appropriate and would not negate the unmodified opinion.
• B)Is considered a qualification of the opinion.
• C)Is a violation of generally accepted reporting standards if this information is disclosed in notes to the financial statements.
• D)Necessitates a revision of the opinion paragraph to include the phrase "with the foregoing explanation."

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Definitions:

Minority Ethnic

An ethnic group that constitutes a smaller percentage of the total population and is often differentiated by language, culture, or race.

Socially Defined

Characteristics or norms that are determined by societal beliefs, values, and practices.

Ethnic Groups

Groups of people who share common cultural practices, views, and lineage, often distinguishing themselves from other groups.

Biologically

Pertaining to biology, the science that studies living organisms and their interactions with each other and their environments.