When an Auditor Expresses an Unmodified Opinion About a Company's

question 6

Multiple Choice

When an auditor expresses an unmodified opinion about a company's financial statements, it means that the financial statements

• A) are free from error.
• B) present fairly the financial position, results of operations, and cash flows in accordance with GAAP.
• C) indicate that the company is doing well and would make a good investment.
• D) contain exceptions due to a departure from GAAP.

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Definitions:

Inferior Oblique

A muscle in the eye that contributes to the upward and outward movement of the eyeball.

Optic Canal

A narrow passageway in the sphenoid bone of the skull through which the optic nerve and ophthalmic artery pass to the eye.

Agonist

A substance that fully activates the receptor it binds to, producing a maximal biological response.

Inferior Rectus

A muscle in the eye that controls downward eye movements, part of the extraocular muscles.