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:

Striking Price

Also known as the exercise price, it is the price at which the holder of an option can buy (call) or sell (put) the underlying asset.

Option Contract

A financial contract giving the buyer the right, but not the obligation, to buy or sell an asset at a set price on or before a certain date.

Exercise Price

The specified price at which an option holder can buy (in a call option) or sell (in a put option) the underlying asset.

Leveraged Firm

A company that uses a high level of debt to finance its operations.