Paul Is an Independent Auditor Who Has Been Hired to Audit

question 76

Multiple Choice

Paul is an independent auditor who has been hired to audit Pattorna,Inc.'s financial records.He finds that there is insufficient information about the financial records to draw a conclusion about their accuracy.Which of the following would Paul issue?

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

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Definitions:

Standard Price

A pre-determined cost assigned to goods and services, used as a benchmark in budgeting and variance analysis.

Pounds

A unit of weight commonly used in the British imperial and United States customary measurement systems.

Direct Materials Price Variance

The difference between the actual cost of direct materials used in production and the expected (or standard) cost of those materials.

Per-unit Standards

Benchmarks or norms for the cost or quantity of materials, labor, and overhead required to produce one unit of product, used for budgeting and performance evaluation.