An Auditor Has Been Engaged to Report on Management's Report

question 49

Multiple Choice

An auditor has been engaged to report on management's report on internal control.Management's report points to a material weakness in its system of internal controls over inventory.The auditor's report should be a(n) ________.

• A)adverse opinion
• B)qualified opinion for a GAAP departure
• C)clean opinion
• D)clean opinion with an emphasis of matter paragraph

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Definitions:

Sales Job

A role that involves promoting and selling products or services to customers, often requiring strong communication and persuasion skills.

Entrepreneurs

Individuals who undertake the creation, organization, and ownership of a new business venture, facing considerable risk and uncertainty but potentially gaining significant rewards.

Commercial Lending Institutions

Banks and other financial entities that provide loans to businesses for the purpose of facilitating growth and operational expenses.

Legal Responsibilities

Obligations that are defined by law, which individuals or entities are required to fulfill.