An Auditor Expresses an Unqualified Opinion on the Financial Statements

question 60

Multiple Choice

An auditor expresses an unqualified opinion on the financial statements of a publically held client. Subsequent to the audit, the client files for bankruptcy protection. If the bankruptcy was caused by poor internal controls at a service provider, the auditor may use as a valid defense which of the following?

• A) It relied on the work of another auditor.
• B) It extended its testing of the client's internal control environment.
• C) It extended its testing of client internal controls by performing tests of controls at the service provider.
• D) Any of the above depending on the circumstances.

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Definitions:

Counseling Context

The setting or circumstances in which therapeutic sessions occur, focusing on confidentiality, the therapist-client relationship, and the goals of therapy.

Special Strategies

Unique techniques or methods developed to solve problems or achieve objectives.

Neglected Child

A child who does not receive adequate care, affection, or attention from caregivers.

Rejected Child

A child who is consistently left out, ignored, or actively disliked by their peers.