In which of the following circumstances would an auditor be most likely to express an adverse opinion on a company's financial statements?
a. The client has had significant transactions with related entities that the auditor wants to emphasize.
b. The financial statements are not in conformity with FASB requirements regarding the capitalization of leases.
c. The auditor is not independent.
d. There is substantial doubt about the entity's ability to continue as a going concern.
b
You might also like to view...
Special journals can be created for almost any type of transaction
Indicate whether the statement is true or false
According to your textbook, full range leadership assumes leadership is most effective when ___________
a. A leader is transformational b. A leader is transactional c. A leader is both transformational and transactional d. A leader is transactional and passive-avoidant
The advantage to an S corporation is
a. its offering of multiple classes of stock. b. its treatment of shareholders for income taxation purposes. c. its ability to attract an unlimited number of shareholders. d. its ability to have partnerships and corporations invest as shareholders.
The Poole Company reported the following income for Year 2:Sales$30,000 Cost of goods sold 8,000 Gross margin$22,000 Selling and administrative expense 10,000 Operating income$12,000 Interest expense 4,000 Income before taxes$8,000 income tax expense 2,500 Net income$5,500 What is the company's net margin? (Rounded to the nearest whole percent.)
A. 27% B. 73% C. 40% D. 18%