An Audit Client Has Refused to Allow the Auditors to Perform

question 27

Multiple Choice

An audit client has refused to allow the auditors to perform a presumptively mandatory auditing procedure and there are no other effective alternate procedures available. The circumstance would normally result in the issuance of:

• A) A disclaimer of opinion.
• B) An adverse opinion.
• C) A standard unmodified opinion with a qualified scope paragraph.
• D) An unmodified report with an emphasis-of-matter paragraph.

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Definitions:

Deadweight Loss

An economic inefficiency resulting from the lack of or impossibility to attain equilibrium in the market for a particular good or service.

Tax Revenue

The income generated by the government through the imposition of taxes on goods, services, and income.

Supply and Demand

Supply and demand is a fundamental economic model describing how prices and quantities of goods and services are determined in a market.

Tax Burden

The impact of a tax on the welfare of an economy, often measured as the portion of total income or expenditure paid in taxes by individuals or businesses.