If an Auditor Concludes the Financial Statements Contain Only Immaterial

question 24

Multiple Choice

If an auditor concludes the financial statements contain only immaterial errors, then the auditor should:

• A) correct the errors.
• B) have the client correct the errors.
• C) issue an unqualified ("clean") opinion on the financial statements.
• D) issue a qualified opinion on the financial statements.

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Definitions:

Macroenvironment Analysis Framework

A strategic tool used to analyze the external environment that a business operates in, often involving political, economic, sociocultural, technological, environmental, and legal factors (PESTEL).

Inflation

Refers to the persistent increase in the prices of goods and services.

Growth Of Industry

The process of expansion and increased productivity within a specific sector of the economy.

Greenwashing

The practice of making misleading or unsubstantiated claims about the environmental benefits of a product, service, or company in order to present an image of environmental responsibility.