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NEW QUESTION: 1
Which of the following components would a user MOST need when building a virtual server?
A. Networking speed
C. High-end video card
D. High-end sound card
NEW QUESTION: 2
A client's lawyer is unable to form a conclusion about the likelihood of an unfavorable outcome of pending
litigation because of inherent uncertainties. If the litigation's effect on the client's financial statements could
be material but it is properly disclosed in the financial statements, the auditor most likely would:
A. Disclaim an opinion on the financial statements because of the materiality of the litigation's effect.
B. Issue an unqualified opinion without modification.
C. Withdraw from the engagement because of the lack of information furnished by the lawyer.
D. Issue a qualified opinion in the auditor's report because of the lawyer's scope limitation.
Choice "D" is correct. A lawyer may be unable to respond concerning the likelihood of an unfavorable
outcome of litigation, claims, and assessments or the amount or range of potential loss, because of
inherent uncertainties. Even if the effect of the matter on the financial statements could be material, if it is
properly disclosed (and supported by available evidence), the auditor will ordinarily issue an unqualified
opinion without any modification.
Choice "A" is incorrect. The inability to form an opinion on the amount or range of potential loss would
generally not be classified as a scope limitation resulting in a qualification.
Choice "B" is incorrect. The auditor should consider withdrawing from the engagement only if the lawyer
withholds information per the client's request. Given the fact pattern, there is no need for the auditor to
withdraw from the engagement.
Choice "C" is incorrect. The inability to form an opinion on the amount or range of potential loss would
generally not be classified as a scope limitation resulting in a disclaimer of opinion.