When a User Sees That a Standard Unqualified Opinion Has

question 46

Multiple Choice

When a user sees that a standard unqualified opinion has been expressed by an external auditor, he or she may correctly infer that:

• A) no material errors were found during the engagement.
• B) no embezzlements remain undetected.
• C) any system defects encountered during the engagement have been corrected to the auditor's satisfaction.
• D) any differences between management and the auditor on material accounting matters have been resolved to the auditor's satisfaction.
• E) any detected management fraud is immaterial.

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Definitions:

Markup Over Cost

The ratio or percentage by which a product’s selling price exceeds its cost, effectively representing the gross profit margin.

Consolidated Cost Of Goods Sold

The total cost of goods that have been sold by a parent company and its subsidiaries, presented as a single figure in consolidated financial statements.

Intra-entity Transfers

Transactions that occur between two units within the same company, such as the transfer of goods or services from one department to another.

Consolidated Sales

The total sales revenue of a company and its subsidiaries combined, presented as a single figure in financial statements.