Which of the Following Auditor Opinions Would Be Appropriate When

question 33

Multiple Choice

Which of the following auditor opinions would be appropriate when the auditor is unable to determine if a company's statements were prepared in conformity with GAAP?

• A)adverse opinion
• B)qualified opinion
• C)disclaimer of opinion
• D)unqualified opinion

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Definitions:

Deposits In Transit

Funds that have been deposited by a company but not yet credited to its bank account.

NSF Check

A check that has been declined by a bank due to insufficient funds in the account it was drawn on.

Adjusted Cash Balance

The cash amount reflected in the accounting records after adjustments for items like outstanding checks and deposits-in-transit.

Deposits In Transit

Funds that have been sent to a bank but not yet recorded by the bank in the account holder's bank statement.