If an Auditor Makes a Disclaimer of Opinion, This Means

question 53

Multiple Choice

If an auditor makes a disclaimer of opinion, this means that the auditor is ________.

• A) favorable to the company's financial statement matching its performance but notes a few departures from Generally Accepted Accounting Principles (GAAPs)
• B) unfavorable about the financial statement representing the company's position
• C) unable to draw a conclusion about the accuracy of the company's financial records owing to lack of information
• D) favorable of the company's financial statements representing its performance

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Definitions:

Basic Precepts

Fundamental principles or beliefs that serve as the foundation for a system, theory, or organization.

Contract Law

The body of law governing the formation, execution, and enforcement of contracts between parties.

Fair Bargain

A deal or agreement that is considered equitable and satisfactory to all parties involved.

Full Satisfaction

The complete fulfillment of an obligation or payment in a manner that fully satisfies the terms agreed upon.