If a Company Receives an Unqualified Audit Opinion It Means

question 37

Multiple Choice

If a company receives an unqualified audit opinion it means the auditors:

• A)did not complete a full audit and therefore do not feel qualified to give an opinion on financial statements.
• B)are providing assurance that the company will remain financially viable for at least the next year.
• C)are providing assurance that the company's financial statements fairly present company's financial performance and position.
• D)are providing assurance that the company's financial statements are free from misstatement, fraudulent accounting and fairly indicate future performance.

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Definitions:

Adaptation-level Phenomenon

The psychological process by which an individual's expectations and standards change based on past experiences, influencing how new situations are perceived.

External Locus

A belief that external forces, rather than personal actions or decisions, dictate the events in one’s life.

Feel-good,do-good Phenomenon

The observation that people are more likely to engage in prosocial behavior, such as helping others, when they are in a good mood.

Brain Activation

The process involving increased blood flow and energy consumption in specific areas of the brain in response to tasks or stimuli.