Which of the Following Representations Does an Auditor Make Explicitly $\begin{array}{ll}\text { Conformity with PCAOB Standards}&\text{Going Concern Status}\end{array}$

question 1

Multiple Choice

Which of the following representations does an auditor make explicitly and which implicitly when issuing a standard unqualified opinion on a public company's financial statements? $\begin{array}{ll}\text { Conformity with PCAOB Standards}&\text{Going Concern Status}\end{array}$
A- $\begin{array}{ll}\quad\quad\quad\quad\quad\text { Explicitly } &\quad\quad\quad\quad\quad\quad\quad \text { Explicitly } \\\end{array}$
B- $\begin{array}{ll}\quad\quad\quad\quad\quad\text { Implicitly } &\quad\quad\quad\quad\quad\quad\quad \text { Implicitly } \\\end{array}$
C- $\begin{array}{ll}\quad\quad\quad\quad\quad\text { Implicitly } &\quad\quad\quad\quad\quad\quad\quad \text { Explicitly } \\\end{array}$
D- $\begin{array}{ll}\quad\quad\quad\quad\quad\text { Explicitly } &\quad\quad\quad\quad\quad\quad\quad \text { Implicitly }\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Positively Correlated

A relationship between two variables where both either increase or decrease together.

Portfolio

A conglomerate of monetary investments incorporating shares, debentures, material goods, cash on hand, and assets akin to cash, inclusive of mutual funds and ETFs.

Mean

The average of a set of numbers, calculated by dividing the sum of all numbers by the count of numbers.

Investment

The allocation of resources, usually financial, in expectation of generating an income or profit.