Which Type of Audit Opinion Is Appropriate If an Auditor

question 81

Multiple Choice

Which type of audit opinion is appropriate if an auditor is not deemed to be independent?

• A) Adverse.
• B) Disclaimer of opinion.
• C) Qualified.
• D) Unqualified.

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Definitions:

Gross Profit Percentage

A financial ratio expressing gross profit as a percentage of revenue, indicating the efficiency of production or service delivery.

Net Profit Margin Percentage

This is a financial metric that represents the percentage of revenue that remains as profit after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from a company's total revenue.

Cost of Goods Sold Percentage

A ratio that compares the cost of goods sold to the total sales revenue, indicating the efficiency of production and pricing.

Asset Turnover Ratios

Ratios that capture how efficiently a company uses its assets.