If an Auditor Makes a Disclaimer of Opinion,this Means That

question 99

Multiple Choice

If an auditor makes a disclaimer of opinion,this means that the auditor ________.

• A) is of the opinion that the company's financial statement matches its performance but notes a few departures from GAAPs
• B) is of the opinion that the company's financial statement does not accurately reflect the company's financial position
• C) is unable to draw a conclusion about the accuracy of the company's financial records owing to lack of information
• D) finds that the company's financial statements fairly represent the company's financial position

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Definitions:

Long-Term Debt

Borrowings by a company that are due for repayment after one year or more.

Tax Breaks

A reduction in the amount of taxes that an individual or company owes to the government, often used to incentivize certain behaviors or investments.

Net Working Capital

Net working capital is a financial metric that represents the difference between a company's current assets and current liabilities.

Current Ratio

Current assets divided by current liabilities. A financial ratio that measures a firm’s liquidity, the ability to pay its bills in the short run.