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:

Unlimited Queue

A theoretical concept where the queue or line of customers or items waiting for service can grow indefinitely without any bounds.

Negative Exponential

A statistical distribution often used to model the time between independent events that happen at a constant average rate.

Poisson

A probability distribution that represents the likelihood of a certain number of events happening within a specified time or space interval.

Probability Distributions

Statistical functions that describe all the possible values and likelihoods that a random variable can take within a given range.