If an Entity's External Auditor Expresses an Unmodified Opinion as a Result

question 7

Multiple Choice

If an entity's external auditor expresses an unmodified opinion as a result of the audit of the entity's financial report, readers of the auditor's report can assume that:

• A)the entity is financially sound and the financial report is accurate.
• B)the external auditor found no irregularities.
• C)all material disagreements between the entity and the external auditor about the application of accounting principles were resolved to the satisfaction of the auditor.
• D)the internal control structure is effective.

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Definitions:

Qualitative Methodology

A research strategy focusing on understanding and interpreting the meanings and experiences of research subjects through non-numeric data.

Statistical Tests

Procedures used in statistics to determine whether there is enough evidence in a set of data to infer that a certain condition is true for the entire population.

Dependent Variable

The variable being tested and measured in an experiment, which is expected to change as a result of manipulations of the independent variable.

Reading Programs

Educational strategies or curriculums designed to improve literacy skills, including comprehension, fluency, and vocabulary.