In Which of the Following Circumstances May the Auditor Issue

question 16

Multiple Choice

In which of the following circumstances may the auditor issue the standard unqualified,unmodified audit report?

• A)The client disclosed a change in accounting principles with an immaterial effect on financial position and results of operations.
• B)The financial statements do not disclose significant going concern issues.
• C)The financial statements do not disclose a justified departure from generally accepted accounting principles.
• D)The auditor has not been able to audit a substantial portion of the balance sheet because of circumstances beyond anyone's control.

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Definitions:

Per Capita Energy

The average amount of energy consumption per person in a specific population or area.

Economically Efficient

A situation in which every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Single Energy Source

Reliance on one type of energy for power or fuel, such as oil, natural gas, or solar power.

U.S. Electricity

Refers to the production, distribution, and consumption patterns of electricity within the United States, characterized by regional variations and evolving technologies.