12. 13. 14. Which of the following best describes why the notes that accompany the financial statements are required? The notes: A. permit flexibility in statement preparation. B. standardize financial reporting across companies. C. provide information necessary to understand the financial statements. What type of audit opinion is preferred when analyzing financial statements? A Qualified. B. Adverse. C. Unqualified An auditor determines that a company's financial statements are prepared in accordance with applicable accounting standards except with respect to inventory reporting. This exception is most likely to result in an audit opinion that is: adverse. B. qualified. C. unqualified An independent audit report is most likely to provide: A absolute assurance about the accuracy of the financial statements. B. reasonable assurance that the financial statements are fairly presented C. a qualified opinion with respect to the transparency of the financial statements. Interim financial reports released by a company are most likely to be: A monthly B. unaudited. C. unqualified A 15. 16