Green,CPA,was Engaged to Audit the Financial Statements of Essex Corporation

question 7

Multiple Choice

Green,CPA,was engaged to audit the financial statements of Essex Corporation after its fiscal year had ended.The timing of Green's appointment as auditor and the start of field work made confirmation of accounts receivable by direct communication with the debtors impracticable.Green applied other procedures and was satisfied as to the reasonableness of the account balances.Green's auditor's report most likely contained a(n) ________.

• A)unqualified opinion with standard wording
• B)unqualified opinion with an explanatory paragraph
• C)qualified opinion due to a scope limitation
• D)qualified opinion due to a departure from generally accepted auditing standards

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Definitions:

Radioactive Material

Substances that emit radiation as a result of the spontaneous disintegration of atomic nuclei.

Strip Mines

Large, open-pit mines where layers of soil and rock are removed to access underlying minerals.

Underground Machines

No definitive context, but likely refers to equipment used for underground operations such as mining or tunnel construction.

Oil Shale

A fine-grained sedimentary rock containing organic materials that can be processed to produce shale oil, a type of unconventional oil.