In Which of the Following Situations Would an Auditor Ordinarily

question 55

Multiple Choice

In which of the following situations would an auditor ordinarily choose between expressing an "except for" qualified opinion and expressing an adverse opinion?

• A) The auditor did not observe the entity's physical inventory and is unable to become satisfied as to its balance by other auditing procedures.
• B) The financial statements fail to disclose information that is required by generally accepted accounting principles.
• C) The auditor is asked to report only on the entity's balance sheet and not on the other basic financial statements.
• D) Events disclosed in the financial statements cause the auditor to have substantial doubt about the entity's ability to continue as a going concern.

---

Definitions:

Interaction Effects

Refer to how the relationship between two variables changes when a third variable is introduced.

Factorial ANOVA

A statistical test used to compare the means of more than two groups considering multiple independent variables.

Research Hypotheses

Proposed explanations or predictions that are based on limited evidence as a starting point for further investigation.

Factorial Analysis

An analytical technique for interpreting the variability in observed, correlated variables through fewer unseen variables termed factors.