4. Which of the following statements is true regarding the independent auditors' report?a) A qualified opinion is considered a "clean" opinion since the financials qualify as being in accordance with GAAP.b) An unmodified (unqualified) opinion is given when the financial statements are fairly stated in all material respects,except for a certain issue that the auditors identify in a separate paragraph in their report.c) A disclaimer of opinion is given when the auditors have completed the audit and have found that the financial statementsare not fairly stated in all material respects.d) Adverse opinions are fairly common, due to the adverse relationships between auditors and their clients.e) None of the above.

e) None of the above. Here's why each statement is incorrect:a) A qualified opinion is not…

Answered: 4. Which of the following statements is…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

What type of opinion is issued by the auditor if he or she is unable to determine the overall fairness of the financial statements?
The auditors include an emphasis-of-matter paragraph in an otherwise unmodified report on the entity's financial statements to emphasize that the entity being reported on had significant transactions with related parties. The inclusifis considered a qualification of the opinion.on of this separate paragraph
When financial statements are affected by a material departure from generally accepted accounting principles, the auditors should: Withdraw from the engagement. Issue an unmodified opinion with a basis for modification paragraph. Issue an "except for" qualification or a disclaimer of opinion. Issue an "except for" qualification or an adverse opinion.
Negative Assurance in Review Reports. One portion of the report on a review services engagement is the following: “Based on my review, I am not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformitywith generally accepted accounting principles [or another framework for financial reporting].”Required:a. Is this paragraph a “negative assurance” given by the accountants?b. Why is negative assurance generally prohibited in audit reports?c. What justification is there for permitting negative assurance in a review services report on unaudited financial statements and on interim financial information?
25. Which of the following would not be included in an accountant's review report on the financial statements of a nonpublic entity? Group of answer choices A statement that the review was made in accordance with generally accepted auditing standards. A statement that all information included in the financial statements is the representation of management. A statement describing the principal procedures performed. A statement describing the auditor's conclusions based on the results of the review.
A group auditor decides not to take responsibility for the component auditor's audit of a subsidiary. The effect on the audit report is a. An additional paragraph to disclaim an opinion on the group auditor's audit. b. An additional paragraph qualifying an opinion on the group auditor's audit. c. A detail, in terms of dollars and percentages, of the group auditor's work in the Opinion section of the audit report. d. A detail, in terms of dollars and percentages, of the group auditor's work in the Basis for Opinion section of the audit report.
(i) To obtain absolute assurance about whether the financial statements have no fraud or error, thereby enabling the auditor to ensure the financial statements are prepared, in all material respects, in accordance with an applicable financial reporting framework; and(ii) To prepare the financial statements, and communicate as required by the HKASS.Q) Is the assurance level correct? If yes, what should the auditors do to achieve it? If no, state the correct assurance level and the reasons why only such level is achievable for audit purpose.

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