Examlex

Solved

If the Auditor Has No Reservations About the Fairness of the Financial

question 39

Multiple Choice

If the auditor has no reservations about the fairness of the financial statements but believes there is a remote possibility that resolution of an uncertainty will have a material effect on the financial statements,which of the following would the auditor issue?


Definitions:

Adequacy of Consideration

A legal principle assessing whether the value exchanged in a contract is reasonable and fair to both parties.

Breach-of-Contract

An act of breaking the terms set out in a contract, which can lead to legal consequences and damages.

Preexisting Duty Rule

A legal principle stating that performing a duty that one is already legally obligated to do is not sufficient consideration for a new contract.

Illusory Promise

A statement that appears to be a promise but does not actually bind the party to any commitment or obligation.

Related Questions