The "Scope" Paragraph of an Unqualified Audit Opinion States That

question 9

Multiple Choice

The "scope" paragraph of an unqualified audit opinion states that the auditor

• A)examined all of the information used to prepare the financial statements.
• B)followed GAAP.
• C)established internal control procedures.
• D)used the audit as a basis for the opinion.

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Definitions:

Debit Balances

The situation where the total debits in an account exceed the total credits, indicating assets or expenses.

Credit Balances

Balances in financial accounts indicating the amount owed by the account holder, often seen in liability and equity accounts.

Salaries Expense

The total amount paid to employees for services rendered during a specific period, recognized in the accounting period in which the employees performed the services.

Posting Reference

An identifier or code that links journal entries to the relevant accounts in the general ledger, facilitating tracking and auditing.