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:

Important Information

Data or facts of significant value or relevance to a specific context or decision-making process.

Data Visualization Tools

Software applications used to create graphical representations of information and data.

Organizations

Entities, either public or private, that are structured and managed to pursue collective goals, typically involving a group of people.

Ethical Lapse

A failure to act in a morally correct way, often resulting in a breach of conduct or trust.