Financial Accounting (Revised) 2/e E1.5 E1.6 The integrity of financial statement presentations and disclosures is enhanced when a) The financial statements are audited by a CPA. b) The financial statements are prepared in an environment that includes a strong system of internal control c) The financial statement preparers have the appropriate education and experience necessary. d) All of the above. An auditor rendered an opinion on a company's financial statements which stated that the statements were fair in all material respects taken as a whole except for the treatment of a lease in a manner that materially violated generally accepted accounting principles for lease accounting. The most likely type of opinion the auditor rendered on the financial statements was a) An unmodified opinion. b) A qualified opinion c) An adverse opinion. d) A disclaimer of opinion. Internal control is a process that has as its objectives a) The reasonable assurance of reliable financial reporting, b) Compliance with laws. c) Effective and efficient operations, d) All of the above. The external auditor should report to a) The CEO b) The CFO c) The audit committee. d) All of the above. E1.7 E1.8