Restrictions Imposed by a Client Prohibited the Observation of Physical

question 44

Multiple Choice

Restrictions imposed by a client prohibited the observation of physical inventories that account for 35% of total assets.Alternative audit procedures for inventory were not feasible,although the auditor was able to obtain satisfactory evidence for all other items in the financial statements.The auditor should express ________.

• A)an "except for" qualified opinion referring to a departure from generally accepted accounting principles
• B)a disclaimer of opinion
• C)an unqualified opinion with a separate explanatory paragraph
• D)an unqualified opinion with an explanation in the scope paragraph

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Definitions:

U.S. Neutrality Act

Refers specifically to any of the individual acts within the series of Neutrality Acts passed by the United States in the 1930s to avoid involvement in external conflicts, notably in the lead-up to World War II.

Mexico

A country located in the southern portion of North America, known for its rich cultural heritage, history, and as the former center of the Aztec Empire.

Spanish

A Romance language originating in the Castile region of Spain and now the world's second most spoken native language, with a sprawling influence in the Americas and parts of Africa.