A Disclaimer of Opinion Is Issued When

question 35

Multiple Choice

A disclaimer of opinion is issued when

• A) All informative disclosures have not been made in the financial statements.
• B) Circumstances prevent the auditor from performing all audit procedures necessary to comply with generally accepted auditing standards.
• C) The financial statements are not prepared in accordance with generally accepted accounting principles.
• D) There is a potential going concern issue.

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Definitions:

Potential Trends

Emerging patterns or changes in industries, technology, consumer behavior, or the global economy that could influence future developments.

Regulatory Force

External forces, often in the form of government laws, regulations, and policies, that can impact a business’s operations and its approach to the market.

Environmental Scanning

The process by which businesses monitor and analyze their external environment to identify opportunities and threats.

Technological Environmental Force

Influences in the business environment resulting from changes in technology, impacting how products are produced, marketed, and distributed.