Which Type of Audit Opinion Is Appropriate If an Auditor

question 38

Multiple Choice

Which type of audit opinion is appropriate if an auditor is not deemed to be independent?

• A) Adverse.
• B) Disclaimer of opinion.
• C) Qualified.
• D) Unmodified.

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Definitions:

Nominal Rate of Interest

The stated interest rate on a loan or financial asset, without adjustment for inflation or other factors.

Real Rate of Interest

The inflation-adjusted interest rate, which shows the actual cost of borrowing and the genuine return for lenders or investors.

Inflation Rate

The rate at which prices for all goods and services climb, resulting in a decrease in the ability to purchase.

Holding-Period Return

The return on an investment over the period it is held.