In Which of the Following Situations Would an Auditor Ordinarily

question 31

Multiple Choice

In which of the following situations would an auditor ordinarily choose between expressing an "except for" qualified opinion or an adverse opinion?

• A)The auditor did not observe the entity's physical inventory and is unable to become satisfied as to its balance by other auditing procedures.
• B)The financial statements fail to disclose information that is required by generally accepted accounting principles.
• C)The auditor is asked to report only on the entity's balance sheet and not on the other basic financial statements.
• D)Events disclosed in the financial statements cause the auditor to have substantial doubt about the entity's ability to continue as a going concern.

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Definitions:

Dependent Child

A child who relies on their parent(s) or guardian(s) for financial support and meets certain IRS criteria to be claimed as a dependent for tax purposes.

Head of Household

A tax filing status for unmarried individuals who pay more than half the cost of keeping up a home for themselves and a qualifying individual.

1040EZ

A simplified federal income tax form for individuals with straightforward financial situations, no longer in use as of the 2018 tax year.

Underpayment Penalty

A fine imposed by tax authorities on taxpayers who do not pay enough of their total estimated tax and withholding.