Asked by Jocelyn Espericueta on Jun 14, 2024
Verified
When auditors conclude that the financial records of the company are an accurate reflection of the company's financial status,they will issue a(n) :
A) unqualified opinion.
B) qualified opinion.
C) adverse opinion.
D) disclaimer.
Unqualified Opinion
An opinion issued by an auditor that indicates that the financial records of a firm are an accurate reflection of the firm’s financial status.
Financial Records
Documents that contain information about an entity's financial transactions and status, such as balance sheets, income statements, and cash flow statements.
Financial Status
Describes the current state of an individual’s or organization’s finances, including income, debts, assets, and liabilities.
- Understand the significance and consequences of various audit opinion classifications.
Verified Answer
DM
Diana MensahJun 15, 2024
Final Answer :
A
Explanation :
An unqualified opinion is issued when the auditors conclude that the financial records of the company are an accurate reflection of the company's financial status. It is a clean bill of health and the best possible outcome.
Learning Objectives
- Understand the significance and consequences of various audit opinion classifications.