When the Auditor Issues a Qualified Opinion Due to a Material

question 48

Multiple Choice

When the auditor issues a qualified opinion due to a material misstatement,the auditor should state in the opinion paragraph that,

• A)except for the possible effects of the matters described in the basis for modification paragraph,the financial statements are presented fairly,in all material respects,in accordance with the applicable reporting framework
• B)except for the probable effects of the matters described in the basis for modification paragraph,the financial statements are presented fairly,in all material respects,in accordance with the applicable reporting framework
• C)except for the likely effects of the matters described in the basis for modification paragraph,the financial statements are presented fairly,in all material respects,in accordance with the applicable reporting framework
• D)except for the effects of the matter described in the basis for modification paragraph,the financial statements are presented fairly,in all material respects,in accordance with the applicable reporting framework

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Definitions:

Paid Dividends

Cash or other assets distributed to shareholders out of the company's earnings.

Asset Balances

The valuation of an organization's resources, such as cash, investments, property, and equipment, reflected in its financial statements at a specific point in time.

Liability Balances

The outstanding obligations or debts that a company owes to third parties.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities; also known as shareholders' equity.