Restrictions Imposed by a Client Prohibited the Observation of Physical

question 44

Multiple Choice

Restrictions imposed by a client prohibited the observation of physical inventories that account for 35% of total assets.Alternative audit procedures for inventory were not feasible,although the auditor was able to obtain satisfactory evidence for all other items in the financial statements.The auditor should express ________.

• A)an "except for" qualified opinion referring to a departure from generally accepted accounting principles
• B)a disclaimer of opinion
• C)an unqualified opinion with a separate explanatory paragraph
• D)an unqualified opinion with an explanation in the scope paragraph

---

Definitions:

Monetary Compensation

Payment provided to employees or workers in the form of money for their services or labor.

Labor Time

The duration of time workers spend performing their duties to produce goods or provide services.

No Further Deposits

A situation or condition where no additional deposits or contributions are allowed.

Future Value

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today, considering interest or capital gains.