What Is a Qualified Report

question 45

Multiple Choice

What is a qualified 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.

---

Definitions:

Minimum Required Rate

The lowest rate of return or yield that an investor expects or requires from an investment.

Internal Rate of Return

The discount rate at which the net present value of all cash flows (both positive and negative) from a project or investment equals zero.

Rate of Return

A measure of the profitability and efficiency of an investment, expressed as a percentage of the original investment.

Initial Investment

The funds allocated to start a business or a project, representing the beginning financial input.