When Analyzing the Various Types of Audit Reports

question 54

Multiple Choice

When analyzing the various types of audit reports,

• A) the unmodified opinion with an emphasis-of-matter paragraph is the most common type of report.
• B) companies will generally make the appropriate changes to their accounting records to avoid a qualification by the auditor.
• C) management is more concerned about a qualified report than a disclaimer report.
• D) an adverse report is issued when the auditor is unable to form an opinion on the financial statements.

---

Definitions:

Bookkeeping Department

A division within an organization responsible for recording financial transactions, maintaining financial records, and ensuring accuracy in accounts.

Sales Department

A division within a business that is focused on the selling of products or services.

Public Relations

The professional discipline focused on maintaining and managing the public image of a person, organization, or company.

Low Demand

Pertains to situations where there is little desire or requirement for a product, service, or action, often leading to decreased value or priority.