Which of the Following Statements Best Explains an Unqualified Report

question 28

Multiple Choice

Which of the following statements best explains an unqualified report opinion?

• A)The financial statements contain a departure from GAAP.
• B)The auditor was unable to complete the work necessary to form a complete opinion.
• C)The auditor was not aware of any reasons not to believe the statements are correct.
• D)Based on the evidence obtained the auditor believes the statements are free of material error.

---

Definitions:

Fundamentalists

Individuals or groups who strictly adhere to the basic principles of any subject or discipline, often used in the context of religion to describe those who assert the literal interpretation and strict adherence to its doctrines.

Prohibition

The period from 1920 to 1933 in the United States when the manufacture, sale, and distribution of alcoholic beverages were illegal under the 18th Amendment.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, beginning in the United States following the stock market crash of 1929.

Global

Refers to worldwide scope or application, encompassing all parts of the world.