In Which One of the Following Instances Would an Auditor

question 84

Multiple Choice

In which one of the following instances would an auditor not issue a disclaimer of opinion?

• A)The auditors are not invited to observe the periodic inventory at year-end.
• B)There are significant misstatements in the financial statements.
• C)There is a significant limitation on the scope of the engagement.
• D)There is insufficient evidence for the auditor to form an opinion on the fairness of the financial statements.

---

Definitions:

Cotton

A natural fiber and a key agricultural commodity used primarily in the textile industry for making fabrics.

Internal Auditing

The independent, objective assurance and consulting activity designed to add value and improve an organization's operations, focusing on internal controls and business processes.

Administrative Expense

Costs related to the general management and administration of an organization, such as salaries of executives and office supplies.

Period Cost

Overheads not associated with the production activities, expensed in the timeframe they arise, like sales, general, and administrative outlays.