An Auditor Expresses an Unqualified Opinion on the Financial Statements

question 3

Multiple Choice

An auditor expresses an unqualified opinion on the financial statements of a publically held client. Subsequent to the audit, the client files for bankruptcy protection. The auditor issuing the unqualified opinion may:

• A) cite its reliance on the work of the auditor issuing the SAS 70 report.
• B) disown the opinion as it relies on the work of another auditor.
• C) cite its work on the client's internal controls as the basis for issuing the opinion.
• D) None of the above.

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Definitions:

Broken Bone

A fracture or disruption in the continuity of a bone, often caused by trauma, stress, or disease.

Internal Callus

The internal mass of fibrous tissue and cartilage formed between the ends of a fractured bone during the healing process.

Marrow Cavity

The central, inner part in bones where bone marrow is stored, producing blood cells.

Incomplete Fracture

A type of bone fracture where the bone is cracked but not broken all the way through.