What Does ISA 700 Say About the Interpretation of an Audit

question 2

Multiple Choice

What does ISA 700 say about the interpretation of an audit opinion?

• A) It enhances the credibility of the financial statements of corporation.
• B) It guarantees the future viability of the corporation.
• C) It assures readers that no errors have been made in the financial statements.
• D) It tells shareholders that management has operated the corporation efficiently.

---

Definitions:

Dividend

A payment made by a corporation to its shareholders, usually derived from profits.

Stock Owners

Individuals or entities that hold shares of stock in a corporation, representing partial ownership of that corporation.

Par Preferred Stock

Preferred shares of a company's stock with a fixed face value that typically determines dividend payments.

Par Common Stock

This is a classification of common stock that has a nominal value assigned in the corporate charter and is used in the accounting records.