The Auditor Will Issue an Unqualified Opinion on Internal Control

question 64

Multiple Choice

The auditor will issue an unqualified opinion on internal control over financial reporting when

• A) there are no identified material weaknesses as of the end of the fiscal year.
• B) there have been no restrictions on the scope of the auditor's work.
• C) both a and b
• D) either a or b

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Definitions:

Debit

An accounting entry that either increases an asset or expense account, or decreases a liability or equity account.

Credit

An accounting entry that may either decrease assets or expenses or increase liabilities, equity, and income, recorded on the right side of an accounting ledger.

Trial Balance

An accounting report that lists all the balances in a company's ledger accounts, used to check the accuracy of bookkeeping entries.

Account Balance

The amount of money held in a financial repository, such as a bank account, at any given moment, reflecting all completed transactions.