Question

1. Which of the following is a type of audit opinion that a firm would prefer...

1. Which of the following is a type of audit opinion that a firm would prefer to receive?

a.

Unqualified opinion

b.

Qualified opinion

c.

Adverse opinion

d.

Clear opinion

e.

None of the answers are correct.
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Homework Answers

Answer #1

Option A is correct.

Unqualified Opinion is an audit report which shows all the financial records without any misrepresentation.

Unqualified Opinion shows that financial transactions are recorded as per the GAAP requirement. Hence this is a type of audit opinion that a firm would prefer to receive.

Other type of opinion does not follow GAAP accordance and it also invites misrepresentations.

Please let me know in case you have any queries and I will be happy to assist you.

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