Maggie Oh Performed an Audit of a Client That Had

question 4

Multiple Choice

Maggie Oh performed an audit of a client that had undergone flooding to its operations in St-Jean Sur Richelieu. The client was insured and was able to keep operating. However, there was material damage to the client's warehouse and Maggie felt it would be appropriate to inform the users of the financial statements of this fact in the audit report. This form of audit report is called:

• A) an adverse opinion
• B) unmodified opinion - emphasis of matter
• C) modified opinion
• D) disclaimer of opinion

---

Definitions:

Oral Contract

A verbal agreement between parties that is legally binding, though more difficult to prove than a written contract.

Sale

The act of selling or exchanging goods or services for money or other compensation.

Rafts

Platforms or structures made of buoyant materials, often wood, used for transport or as a floating base.

Main Purpose Rule

A legal principle stating that if the main purpose of a transaction is to benefit the guarantor, then a written agreement isn't necessary to enforce the guaranty.