Under Which Circumstances Should an Auditor NOT Issue a Disclaimer

question 8

Multiple Choice

Under which circumstances should an auditor NOT issue a disclaimer of opinion?

• A) When the auditor has not performed all the necessary fieldwork.
• B) When an auditor has determined the client is not following GAAP.
• C) When the auditor is denied access to the minutes of the Board of Directors.
• D) Both "b" and "c".

Prepare a schedule of accounts receivable and payable and understand its importance in financial reporting.

Discuss the concept and calculation of segment return on assets and its significance for profitability analysis.

Illustrate the adjustment and correction processes in the event of errors in the accounting records.

Explain the role and significance of subsidiary ledgers and their relationship with the general ledger.

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Definitions:

Extraversion

A personality trait characterized by high levels of sociability, talkativeness, energy, and assertiveness, one of the dimensions in the Big Five personality traits.

Big Five

A model outlining five major dimensions of human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Assertiveness

The quality of being confident and self-assured without being aggressive, allowing one to express themselves clearly and respectfully.

Five-factor Model

A theory in psychology that identifies five core personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.