Maggie Oh Performed an Audit of a Client That Had

question 4

Multiple Choice

Maggie Oh performed an audit of a client that had undergone flooding to its operations in St-Jean Sur Richelieu. The client was insured and was able to keep operating. However, there was material damage to the client's warehouse and Maggie felt it would be appropriate to inform the users of the financial statements of this fact in the audit report. This form of audit report is called:

• A) an adverse opinion
• B) unmodified opinion - emphasis of matter
• C) modified opinion
• D) disclaimer of opinion

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Definitions:

Reporting Issuer

A company or entity that is obligated to submit regular financial and operational reports to a regulatory agency.

Distribution of Securities

The process of making securities available to investors, typically through sale, in accordance with regulatory requirements.

Underwriter

A professional or company that assesses and assumes risk on behalf of clients, often seen in insurance, securities, and loan industries.

Open-Market Trader

An individual or entity that buys and sells securities, commodities, or other goods in the open market, adhering to the principles of supply and demand.