When There Is a Justified Departure from GAAP Which Is

question 36

Multiple Choice

When there is a justified departure from GAAP which is considered material, the auditor should issue a(n) :

• A)standard unqualified audit report.
• B)disclaimer of opinion.
• C)unqualified audit report with an explanatory paragraph.
• D)adverse opinion.

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Definitions:

Checkbook Balance

The current total amount of money available in a checking account, as recorded by the account holder in their checkbook.

Outstanding Checks

Checks that have been written and recorded in the account balance but have not yet been cashed or cleared by the bank.

Outstanding Deposit

Funds that have been received but not yet processed by a financial institution.

Bank Statement Balance

The total amount of money that is available in a bank account at a particular point in time, as recorded by the bank.