Which of the Following Is Not an Area of Disagreement

question 62

Multiple Choice

Which of the following is not an area of disagreement with those charged with governance that may result in a modified audit opinion?

• A) the acceptability of accounting policies selected
• B) the terms of the audit engagement
• C) the method of application of accounting policies
• D) the adequacy of disclosures in the financial statements

---

Definitions:

Sales Increase

An upward trend in the volume or amount of sales achieved by a business over a given period, indicating growth in revenue.

Stock Appreciation Rights

A type of compensation granted to employees that provides the right to receive cash or stock based on the increase in the price of the company's stock over a set period.

Compensatory Stock Option Plans

Employee benefit plans which grant the option to purchase company stock at a discounted price as compensation or incentive.

Performance-Based Stock Option Plans

Incentive programs that grant options to employees as rewards for achieving specific performance targets.