In Which One of the Following Instances Would an Auditor

question 100

Multiple Choice

In which one of the following instances would an auditor most likely issue a standard unqualified opinion?

• A)Management's disclosures are missing or inadequate.
• B)There is substantial doubt about the entity's ability to continue as a going concern.
• C)There is a significant limitation on the scope of the engagement.
• D)There is an immaterial deviation from GAAP related to capitalizing repairs.

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Definitions:

Activity Variance

The difference between planned levels of activity and actual levels, often analyzed to improve budgeting and operational efficiency.

Wages And Salaries

Payments made by businesses to their workforce, which may be calculated on an hourly, daily, or yearly basis, encompassing both fixed salaries and variable wages.

Budgeting

The process of preparing detailed financial plans, forecasting revenues and expenditures, and setting financial goals.

Net Operating Income

This metric measures the profitability of a business from its primary operations, excluding expenses from financing and taxes.