If a Client Refuses to Accept an Auditors' Report That

question 45

Multiple Choice

If a client refuses to accept an auditors' report that has been modified, the public accounting firm should withdraw from the engagement and give its reasons in writing to the board of directors except when:

• A) The auditor is unable to obtain sufficient appropriate evidence about a suspected illegal act
• B) The client fails to account for or disclose properly a material amount connected with an illegal act
• C) The auditor is unable to estimate amounts involved in an illegal act
• D) The auditor is unable to observe the physical inventory

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Definitions:

TOT Effect

The Tip of the Tongue phenomenon, a state where one cannot quite recall a familiar word but feels that retrieval is imminent.

Tip-Of-The-Tongue Phenomenon

A cognitive condition where a person is unable to recall a familiar word or name, experiencing a temporary block or lapse in memory.

Encoding Problems

Difficulties in converting information into a form that can be stored and retrieved from memory, often affecting learning and retention.

Flashbulb Memory

A vivid, detailed memory of an emotionally significant moment or event.