In an Unqualified Audit Report on the Financial Statements of a Public

question 89

Multiple Choice

In an unqualified audit report on the financial statements of a public company, what does the first statement of the opinion paragraph state?

• A)An audit was conducted, which financial statements were audited, and the dates of the financial statements.
• B)PCAOB audit standards were followed since it is a public company.
• C)The audit firm believes that its audit provides a reasonable basis for its opinion.
• D)Management is responsible for the fair presentation of the financial statements.

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Definitions:

Cultural Syndrome

Patterns of behavior, beliefs, and values that are characteristic of a specific culture, and that influence individual behaviors and perceptions.

Shared Attitudes

Common beliefs or opinions held by a group of people that influence their behaviors and perceptions.

Geographic Region

A specific area or section of space that is identified or defined by its natural or human-made characteristics.

Change Blindness

See inattentional blindness.