Which of the Following Is a Proper Description of an Auditor

question 69

Multiple Choice

Which of the following is a proper description of an auditor report?

• A)Unqualified opinion: identifies certain exceptions to the clean opinion
• B)Adverse opinion: notes that there are material misstatements presented
• C)Qualified opinion: states that the auditors believe the financial statements are fairly and consistently presented in accordance with GAAP
• D)Unqualified opinion: states that the auditors were not able to reach a conclusion

Comprehend the recording of transactions using the double-entry system.

Identify the effects of transactions on financial statements.

Learn how to record transactions involving cash, receivables, payables, and equity.

Understand the impact of prepaid and unearned items on financial statements.

---

Definitions:

Credit Risk

The risk of loss resulting from a borrower's failure to repay a loan or meet contractual obligations.

Compounded Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Annual Interest Rate

The percentage increase in money charged per year for the use of borrowed funds or for delaying the repayment of a debt.

Interest Rate

The cost of borrowing money or the reward for saving, usually expressed as a percentage of the principal amount per period.