Restrictions Imposed by a Client Prohibited the Observation of Physical

question 44

Multiple Choice

Restrictions imposed by a client prohibited the observation of physical inventories that account for 35% of total assets.Alternative audit procedures for inventory were not feasible,although the auditor was able to obtain satisfactory evidence for all other items in the financial statements.The auditor should express ________.

• A)an "except for" qualified opinion referring to a departure from generally accepted accounting principles
• B)a disclaimer of opinion
• C)an unqualified opinion with a separate explanatory paragraph
• D)an unqualified opinion with an explanation in the scope paragraph

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Definitions:

Pneumatic Force

The power or force exerted by compressed air in various mechanical applications.

Standard Deviation

A measure of the dispersion or variability of a set of data points from their mean, often used in finance to quantify the risk of an investment.

Value At Risk

A statistic that measures and quantifies the level of financial risk within a firm or portfolio over a specific time frame.