When an Auditor Expresses an Unqualified Audit Opinion, It Means

question 4

Multiple Choice

When an auditor expresses an unqualified audit opinion, it means the

• A) entity has complied with the reporting obligations as required by CPAB.
• B) internal controls of the entity are operating efficiently and effectively.
• C) financial statements are accurate in all respects.
• D) financial statements have been prepared in accordance with an applicable accounting framework.

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Definitions:

Private Market

A component of the financial market in which financial instruments and assets are traded directly between parties without a public exchange.

Informational Cascade

A process in decision-making where individuals consecutively follow others' actions or choices ignoring their own private information.

Investment Opportunity

A chance to invest capital with the expectation of achieving a future financial return.

Full Information

A market condition where all participants have access to all relevant information, eliminating information asymmetry.