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:

Coolants

Substances used to reduce or maintain the temperature of systems or components, often in mechanical and electrical devices.

Sterilants

Chemical or physical agents used to destroy or eliminate all forms of microbial life, including spores.

Biodegradable

Capable of being decomposed by bacteria or other living organisms, thus avoiding pollution.

Odourless

Lacking a detectable smell, characteristic of certain substances or conditions where no odor is perceptible.