A Scope Limitation Sufficient to Preclude an Unqualified Opinion Always

question 40

Multiple Choice

A scope limitation sufficient to preclude an unqualified opinion always will result when management:

• A)prevents the auditor from reviewing the working papers of the predecessor auditor.
• B)engages the auditor after the year-end physical inventory is completed.
• C)requests that certain material accounts receivable not be confirmed.
• D)refuses to provide a representation letter acknowledging its responsibility for the fair presentation of the financial statements in conformity with GAAP.

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Definitions:

Observable

Something that can be seen or noticed by others, often used in the context of behaviors or phenomena that can be directly witnessed.

Variables

Elements or factors that can change and potentially affect the outcome of a study or experiment.

Intelligence Quotient

A measure of a person's intellectual abilities in relation to an average score, usually determined by standardized tests.

Mental Age

A measure of an individual's mental ability expressed as the age at which an average individual reaches the same level of performance.