The Auditors' Responsibility to Express an Opinion on the Financial

question 68

Multiple Choice

The auditors' responsibility to express an opinion on the financial statements is

• A)Implicitly represented in the auditors' standard report.
• B)Explicitly represented in the introductory paragraph of the auditors' standard report.
• C)Explicitly represented in the scope paragraph of the auditors' standard report.
• D)Explicitly represented in the opinion paragraph of the auditors' standard report.

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Definitions:

Insurance Company

An organization that offers risk management in the form of insurance policies to individuals and businesses, compensating for losses in return for premiums.

Coinsurance Clause

A clause in an insurance contract that encourages property owners to insure their property for an amount as close to full value as possible. If the owner insures the property up to a specified percentage—usually 80 percent—of its value, she or he will recover any loss up to the face amount of the policy.

Fire Insurance

A type of property insurance that covers damage or loss to a property due to fire.

Full Value

Refers to the complete or total value of an asset, without any deductions or adjustments.