An Unqualified Auditors' Opinion About an Entity's Financial Statements

question 17

Multiple Choice

An unqualified auditors' opinion about an entity's financial statements:

• A) is a clean bill of health.
• B) means that all of the entity's transactions during the audited period were checked out.
• C) guarantees that the entity was not involved in or the victim of any fraudulent activities during the audited period.
• D)states that they are presented in conformance with U.S. generally accepted accounting principles.

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Definitions:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated to fulfill basic needs before moving on to other needs, culminating in self-actualization.

Avoidance Motivation

A psychological behavior aimed at avoiding unpleasant outcomes, tasks, or situations, often driven by fear or anxiety about potential negative consequences.

Safety And Security

The state of being protected from harm or other non-desirable outcomes. It encompasses both physical safety and psychological security.

Property

Legally recognized rights and interests in objects, land, or intellectual creations, signifying ownership or possession.