Which of the Following Is Not Explicitly Stated in the Standard

question 138

Multiple Choice

Which of the following is not explicitly stated in the standard unqualified audit report?

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

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Definitions:

Margin

The difference between the selling price of a product and the cost of the product, representing profitability.

Sales

The total revenue earned from the sale of goods or services related to a company's primary operations.

Manufacturing Cycle Efficiency

A measure of the efficiency of the production process, calculated as value-added time divided by the total cycle time.

Value-added Time

The period during which a product or service is being modified or enhanced to increase its value to the customer.