Which of the Following Opinions Would an Auditor Make for a Company

question 8

Multiple Choice

Which of the following opinions would an auditor make for a company that, he or she feels, has materially misstated certain items on its financial statements?

• A) an unqualified opinion
• B) an adverse opinion
• C) a qualified opinion
• D) a disclaimer of opinion

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Definitions:

Creditor Beneficiaries

A third party who benefits from a contract made between two other parties, specifically when the contract's purpose is to repay a debt.

Contract

A legally binding agreement between two or more parties that outlines rights and duties each party has agreed to.

Valid

A term applied to a contract that includes all four elements of a contract—agreement (offer and acceptance), consideration, contractual capacity, and legal object—and thus is enforceable.

Recognizable Beneficiaries

are individuals or entities that can clearly be identified as intended to benefit from a contract, trust, or legal arrangement, even if not directly party to it.