Under which of the following circumstances would a disclaimer of opinion on the company's financial statements not be appropriate?
24(x2).Under which of the following circumstances would a disclaimer of opinion on the company's financial statements not be appropriate?
A)The financial statements fail to contain adequate disclosure of related-party transactions.
B)The company refuses to permit its attorney to furnish information requested in an attorney letter.
C)The auditor is engaged after fiscal year-end and is unable to observe physical inventories or apply alternative procedures to verify their balances.
D)The auditor is unable to determine the amounts associated with illegal acts committed by the company's management.
32(x2).When there has been a change in accounting principles, but the effect of the change on the comparability of the financial statements is not material, the auditor should
A)Refer to the change in an explanatory paragraph.
B)Explicitly concur that the change is preferred.
C)Not refer to consistency in the auditor's report.
D)Refer to the change in the opinion paragraph.
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