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:

Purchases Journal

A record of all credit purchases made by a business, used to track and manage inventory acquisition.

Beverage Supplies

Items and ingredients used in the preparation and sale of drinks, often accounted for in businesses that serve food and drink.

Food Supplies

Items necessary for the production and provision of food services, including raw ingredients, pre-packaged commodities, and other essential food items.

Retail Items

Products that are purchased by consumers for personal use, usually sold in retail stores or through online platforms.