What Is an Unqualified Audit Report

question 43

Multiple Choice

What is an unqualified audit report?

• A)A report stating that the auditors are not qualified to report on a firm.
• B)A report that states the financial statements are in violation of GAAP.
• C)A report that states that departures from GAAP exist in the firm's financial statements.
• D)A report that states the financial statements are presented fairly, in all material respects, and are in conformity with GAAP.

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Definitions:

Higher Power

A spiritual entity or force believed to be greater than oneself, often central in various religious and spiritual beliefs.

Preconventional

The first level of Kohlberg's stages of moral development, where behavior is influenced by anticipation of pleasure or pain rather than by societal norms.

Lawrence Kohlberg

A renowned psychologist from the United States, famous for developing a theory on the stages of moral development.

Punished

The imposition of a penalty as retribution for an offense, or the treatment received as a consequence of an action.