During a Review of the Financial Statements of a Nonpublic

question 35

Multiple Choice

During a review of the financial statements of a nonpublic entity, an accountant becomes aware of inadequate disclosure that is material to the financial statements. If management refuses to correct the financial statement presentations, the accountant should:

• A)issue an adverse opinion.
• B)issue an "except for" qualified opinion.
• C)disclose this departure from generally accepted accounting principles in a separate paragraph of the report.
• D)express only limited assurance on the financial statement presentations.

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Definitions:

Postconventional Level

According to Kohlberg, a period during which moral judgments are derived from moral principles and people look to themselves to set moral standards.

Moral Judgements

Evaluations or decisions made by individuals regarding what is right or wrong in human behavior and actions, based on ethical principles.

Authority Figures

Individuals in positions of power who are respected and obeyed by others, often due to their perceived knowledge, expertise, or position.

Attachment

The enduring affectional tie that binds one person to another.