If the Auditor Lacks Independence, a Disclaimer of Opinion Must

question 154

Multiple Choice

If the auditor lacks independence, a disclaimer of opinion must be issued

• A) if the client requests it.
• B) only if it is highly material.
• C) only if it is material but not pervasive.
• D) in all cases.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset over its useful life to date.

Unearned Revenue

Income received by a company for goods or services that have not yet been delivered or performed.

Roofing Fees Revenue

This refers to the income generated from providing roofing services.