The Unmodified Standard Audit Report of a Nonpublic Company Does

question 7

Multiple Choice

The unmodified standard audit report of a nonpublic company does not explicitly state that:

• A) The financial statements are the responsibility of the company's management.
• B) The audit was conducted in accordance with accounting principles generally accepted in the United States of America.
• C) The auditors believe that the audit provides a reasonable basis for their opinion.
• D) An audit includes assessing the accounting principles used.

---

Definitions:

Bonferroni Method

A statistical correction method used to address the problem of multiple comparisons, reducing the chances of attaining false-positive results.

Confidence Interval

A range of values, derived from the sample data, within which the true population parameter is expected to lie, at a given probability.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution, often related to the number of independent observations in a data set minus any constraints.

F Statistic

A ratio derived from the analysis of variance (ANOVA) that compares the variance between group means to the variance within groups.