When a Client Declines to Disclose Essential Information in the Financial

question 13

Multiple Choice

When a client declines to disclose essential information in the financial statements or notes,the auditor of the financial statements should:

• A)Provide the information in the audit report,if practicable,and qualify the opinion because of a limitation on the scope of the audit.
• B)Provide the information in the audit report,if practicable,and qualify the opinion because of a departure from GAAP.
• C)Issue a disclaimer of opinion because the client has interfered with the auditor's function of assessing the adequacy of disclosure.
• D)Issue an unmodified opinion,but inform the reader by including the omitted information in the audit report.

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Definitions:

HR Department

The division within a company or organization that is focused on activities related to employees, including hiring, training, benefits, and workplace policies.

Centralized

A system or structure where decision-making authority is concentrated at a single point or in a single group, often within the upper levels of an organization.

Training and Development

The process by which an organization enhances the skills, capabilities, and knowledge of its employees through formal and informal educational methods.

Human Resources

The department within an organization responsible for managing all aspects related to employees, including recruitment, training, benefits, and compliance.