What Are the Three Types of Audit Opinion, and What

question 5

Essay

What are the three types of audit opinion, and what is the meaning of each? Which type of opinion is considered the best? Which is considered the worst?

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Definitions:

Bailor

The party in a bailment who temporarily transfers possession but not ownership of a property to another party, the bailee.

Leasehold

An interest in a property that allows the holder (lessee) to use and occupy the land or premises for a specified period, under certain conditions, but does not provide ownership.

Life Estates

A legal right to use and benefit from a property for the duration of an individual's lifetime.

Exclusive Possession

The right of an individual or entity to the use and control of property without interference from others, often associated with lease agreements.