The Phrase "In Our Opinion" Indicates That

question 58

Multiple Choice

The phrase "in our opinion" indicates that

• A)the auditor performed the audit on a test basis.
• B)the auditor's judgment can be relied upon.
• C)the auditor relied on his or her knowledge to perform the audit.
• D)there may be some information risk associated with the financial statements.

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Definitions:

Taxable Income

The amount of income used to calculate how much tax an individual or a company owes to the government in a given tax year.

Average Tax Rate

The proportion of total income that is paid in taxes, calculated by dividing total taxes paid by total income.

Tax Structure

The system or framework of how taxes are imposed in an economy, including rates, bases, and who is taxed.

Tax Structure

The system or arrangement of taxing different economic entities and transactions, encompassing the rates, bases, and administration of taxes.