An Auditor Who Is Reporting on Financial Statements That Contain

question 6

Multiple Choice

An auditor who is reporting on financial statements that contain a material departure from generally accepted accounting principles should include a separate explanatory paragraph and ________.

• A)express a qualified or adverse opinion
• B)not modify the opinion paragraph as long as the departure is adequately disclosed in a footnote
• C)deny an opinion on the financial statements
• D)express a qualified opinion or deny an opinion

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Definitions:

Demonstrating Displacement

The act of showing how emotional needs or impulses are transferred from their original object to a more acceptable or less threatening target.

Work Frustration

The feeling of being upset or annoyed as a result of being unable to achieve one's goals or fulfill expectations in a work environment.

Aggressive Instinct

The innate or inherent impulse towards aggressive behavior, often associated with instincts for survival and competition.

Freud

An Austrian neurologist named Sigmund Freud introduced psychoanalysis, a therapeutic approach aimed at treating mental health issues through discussions between a psychoanalyst and their patient.