Question
Audit reports sometimes include explanatory language that does not result in a qualified opinion -- that is the explanatory language can exist alongside a clean
Audit reports sometimes include explanatory language that does not result in a "qualified" opinion -- that is the explanatory language can exist alongside a clean "unqualified" opinion.Which of the following is true about audit reports that include explanatory language?
a. During the2000-2009time period,the presence of several kinds of explanatory language was predictive of a lower risk of subsequent restatement of the financial statements.
b. During the2000-2009time period,the use of explanatory language occurred in nearly 90%ofaudit reportsamong USApublic companies.
c. During the2000-2009time period,the use of explanatory language occurred rarely,i.e.,in less than 3%ofaudit reportsamong USApublic companies.
d.During the2000-2009time period,the presence of several kinds of explanatory language was predictive of a higher risk of subsequent restatement of the financial statements.
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
