A Disclaimer of Opinion Generally Indicates ________

question 28

Multiple Choice

A disclaimer of opinion generally indicates ________.

• A)the auditor is very uncertain with respect to an item (or multiple items)and cannot form an opinion on the fairness of presentation of the financial statements as a whole
• B)because of a lack of evidence,the auditor is uncertain with respect to an isolated item that is material but not so material that the auditor cannot form an opinion on the fairness of presentation of the financial statements as a whole
• C)the auditor has observed a departure from generally accepted accounting principles that has a material effect upon the fairness of presentation of financial statements,but the departure is not material enough to justify a qualified opinion
• D)the auditor has observed a departure from generally accepted accounting principles that is so material that a qualified opinion is not justified

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Definitions:

Stock Certificate

A physical document that represents ownership of a certain number of shares in a corporation.

No-Par Value

Refers to stocks issued without a specified face value, where the value is determined by the market.

In-Kind

Refers to goods, services, or transactions made in the form of physical goods or commodities rather than money.

Leveraged Buyout

A leveraged buyout is a financial transaction where a company is purchased primarily with borrowed funds, using the assets of the company being acquired as collateral.