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:

Durability

The ability of a product or material to withstand wear, pressure, or damage; its quality of being long-lasting or enduring.

Improperly Fired

Refers to a termination of employment that violates either legal statutes or contractual terms.

Botulism Poisoning

A rare but serious illness caused by a toxin that attacks the body’s nerves and can result in difficulty breathing, muscle paralysis, and even death.

Breach of Contract

The violation of a legal agreement between parties, where one party fails to fulfill their promised obligations, leading to legal consequences.