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9. CPA has been engaged to audit the financial statements of Marchano Ltd., a manufacturer of toys. Several individuals are suing the company because of

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9. CPA has been engaged to audit the financial statements of Marchano Ltd., a manufacturer of toys. Several individuals are suing the company because of a toy that injured children. The company has not disclosed the lawsuit in its financial statements. What type of audit report should be issued? A. Adverse. B. A GAAP qualification. C. A scope qualification. D. Disclaimer or denial

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