As a Result of Management's Refusal to Permit the Auditor

question 46

Multiple Choice

As a result of management's refusal to permit the auditor to physically examine inventory. The auditor must depart from the unqualified audit report because:

• A) the financial statements have not been prepared in accordance with GAAP.
• B) the scope of the audit has been restricted by circumstances beyond either the client's or auditor's control.
• C) the financial statements have not been audited in accordance with GAAS.
• D) the scope of the audit has been restricted.

---

Definitions:

Mental Age

A measure of an individual's intellectual capacity compared to the average intellectual capacity of individuals in the same age group.

IQ

A measure of a person's intelligence as indicated by an intelligence test, relative to the average for their age group.

Wechsler Adult Intelligence Scale

A widely used test designed to measure a person's cognitive ability or intelligence.

Otis-Lennon School Ability

A standardized test designed to assess the school abilities of students, measuring verbal, quantitative, and spatial reasoning abilities.