Which of the Following Best Describes the Conclusions an Auditor

question 13

Multiple Choice

Which of the following best describes the conclusions an auditor makes in an integrated audit that results in an audit report that is unqualified?

• A) The financial statements are fair according to GAAP.
• B) The financial statements are free of material misstatement based on U.S. GAAP and management's report on internal control over financial reporting states that there are no material weaknesses.
• C) The financial statements and internal control over financial reporting are materially correct.
• D) The financial statements are free of material misstatement based on U.S. GAAP and based on the audit, the auditor agrees with management's report that internal control over financial reporting is effective and does not have any material weaknesses.

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Definitions:

Parallel Play

A stage of early childhood development where children play adjacent to each other but do not interact or share toys, indicating emerging social skills.

Aggressive Behavior

Actions or responses that are intended to harm or intimidate others.

Inductive Reasoning

A reasoning technique by which numerous claims, regarded as true or typically established as true, are synthesized to deduce a specific outcome.

Reactive Aggression

An impulsive retaliation for another person’s intentional or accidental hurtful action.