A CPA May Wish to Emphasize Specific Matters Regarding the Financial

question 67

Multiple Choice

A CPA may wish to emphasize specific matters regarding the financial statements even though an unqualified opinion will be issued. Normally, such explanatory information is

• A) included in the scope paragraph.
• B) included in the opinion paragraph.
• C) included in a separate paragraph in the report.
• D) included in the introductory paragraph.

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Definitions:

Scope of Authority

The range or extent of power that an individual or organization legally has to make decisions or take action.

Agent

An individual or entity authorized to act on behalf of another person or entity in business matters or legal transactions.

Liable

Legally responsible for one's actions or for a particular outcome.

Principal's Identity

Refers to the clear disclosure of the principal party's identity in an agency relationship, especially in transactions.