The Standard Unqualified Audit Report

question 37

Multiple Choice

The standard unqualified audit report:

• A)is sometimes called a clean opinion.
• B)can be issued only with an explanatory paragraph.
• C)can be issued if only a balance sheet and income statement are included in the financial statements.
• D)is sometimes called a disclaimer report.

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Definitions:

Petty Cash Fund

A small amount of cash kept on hand to pay for minor, incidental expenses.

Relatively Large Amounts

Describes financial figures or transactions that are significant in size compared to others within the same context.

Sarbanes-Oxley

A U.S. federal law enacted to protect investors by improving the accuracy and reliability of corporate disclosures, made in the wake of financial scandals.

Publicly Held Companies

Corporations whose shares are publicly traded on stock exchanges and available for purchase by the general public.