In Which of the Following Circumstances Will It Be Most

question 72

Multiple Choice

In which of the following circumstances will it be most likely that an adverse opinion is considered appropriate?

• A)The auditor is not independent with respect to the enterprise being audited.
• B)The statements are not in conformity with generally accepted accounting principles due to a departure from GAAP with an immaterial effect on the financial statements.
• C)The statements are not in conformity with generally accepted accounting principles regarding pension plans.
• D)A client-imposed scope limitation prevents the auditor from obtaining sufficient appropriate audit evidence.

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Definitions:

Organic Type

describes organizations that are flexible, adaptive, and characterized by less formal rules and decentralized decision-making.

Specialized Expertise

Advanced knowledge or skills in a specific field or area, gained through education, training, or experience.

Process Controls

The methods and procedures implemented to monitor and manage business processes to ensure efficient and effective operation and to meet goals and standards.

Line Units

Departments or teams directly involved in the core operations or primary purpose of an organization.