If the Auditor Believes That There Is a Remote Probability

question 2

Multiple Choice

If the auditor believes that there is a remote probability that resolution of an uncertainty will have a material effect on the financial statements,the auditor would issue

• A)a disclaimer of opinion.
• B)a standard unqualified opinion.
• C)an adverse opinion.
• D)an unqualified opinion with explanatory paragraphs.

---

Definitions:

Breach Occurs

A situation where one party fails to fulfill their obligations under a contract.

Specific Performance

A legal remedy requiring a party to perform a specific act, often the completion of a contract, rather than paying damages.

Consequential Damages

Losses or damages that result not directly from a party's actions but rather from special circumstances not usually predictable, often considered indirect losses.

Resale of Goods

The act of selling an item that has previously been purchased from a vendor or manufacturer, typically involving goods that are sold in the same condition as they were acquired.