An Auditor Has Been Asked to Report on the Balance

question 7

Multiple Choice

An auditor has been asked to report on the balance sheet of Kane Company but not on the other basic financial statements.The auditor will have access to all information underlying the basic financial statements.Under these circumstances,the auditor:

• A)May accept the engagement.
• B)May accept the engagement but must disclaim an opinion because of an inability to apply the procedures considered necessary.
• C)Should refuse the engagement because there is a client-imposed scope limitation.
• D)Should refuse the engagement because of a departure from generally accepted auditing standards.

---

Definitions:

Environmental Damage

Negative impacts on the environment due to human activities or natural disasters, leading to destruction, decline, or degradation of natural habitats and resources.

Aspen Parkland

A biome characterized by a mix of aspen forests and prairie grasslands, typically found in certain regions of North America.

Even-aged Forests

Forest ecosystems characterized by trees of roughly the same age, typically resulting from a single, widespread regeneration event.

Natural Regeneration

The process by which natural ecosystems recover from disturbance or degradation over time without human assistance.