In Which One of the Following Cases Would an Auditor

question 49

Multiple Choice

In which one of the following cases would an auditor most likely issue a qualified opinion?

• A)There is a highly material,and very pervasive departure from SFAS No.141 and No.142.
• B)There is a change in accounting principles promulgated by the FASB.
• C)There is an immaterial dollar misstatement on the financial statements.
• D)There is one material departure from GAAP that affects only two accounts.

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Definitions:

Outstanding Shares

The total number of shares of stock that are currently owned by shareholders, including shares held by institutional investors and restricted shares held by insiders and company officers.

Balance Sheet

An accounting statement that captures the financial standing of a corporation by itemizing assets, obligations, and shareholders' capital at a certain time.

Available-For-Sale Debt Investments

Debt securities not classified as held-to-maturity or trading securities, carried at fair value, with unrealized gains or losses reported in other comprehensive income.

Trading Debt Investments

Debt securities bought and sold with the intention of profiting from short-term price fluctuations, recorded as current assets.