When a Previously Expressed Opinion Is Updated from Qualified to Unqualified

question 120

Multiple Choice

When a previously expressed opinion is updated from qualified to unqualified, the auditors' report on comparative financial statements should

• A)not modify the previously expressed opinion or refer to factors affecting the opinion on the prior years' financial statements.
• B)update the opinion expressed on the prior years' financial statements but provide no explanation for the updated opinion.
• C)not modify the previously expressed opinion but include a reference to the footnote describing the factors affecting the opinion on the prior years' financial statements.
• D)update the previously expressed opinion and explain the reasons for the change, including a reference to the footnote describing the change.

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Definitions:

Long-Run Future

A perspective focusing on an extended period, considering long-term outcomes, trends, and potential impacts beyond immediate short-term considerations.

Free Cash Flow Valuation

A method to value a company based on the cash flows available after funding operations and capital expenditures.

Stock Analysts

Professionals who research and evaluate publicly traded companies, providing investment recommendations based on expected performance and market trends.

Discounted Free Cash Flow

A valuation method estimating the attractiveness of an investment opportunity by discounting projected free cash flows.