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Basic Question 1 of 5
Most auditors' reports are ______.
B. adverse
C. unqualified
D. a disclaimer of opinion
A. qualified
B. adverse
C. unqualified
D. a disclaimer of opinion
User Contributed Comments 7
| User | Comment |
|---|---|
| cfstester | Except that if they are qualified, they will likely be fired next year. |
| Done | Then what is a Qualified opinion? |
| anricus | you would imagine a qualified opionion is a good one. but in fact an unqualified is the good one! Qualified - auditors disagree with accounting treatment (perhaps on one area) Adverse - accounts are completly useless and wrong Disclaimer - appropriate evidence not in place to form an opinion. |
| teddajr | Qualified ->Disagreements exist. Unqualified -> In accordance. |
| kutta2102 | The term 'unqualified' should be understood with respect to what the auditor's report is trying to say - we've audited the company's financials and are COMPLETELY on-board with it - no caveats. If the audiotr's report said something like "we are in agreement with the accuracy of financial statements but the management did not take into consideration factors x,y,z...." -now that's a qualified opinion. |
| assiduous | unqualified = I have an opinion and I do not need to qualify it qualified = I have an opinion BUT I need to qualify it adverse = I have an opinion; the financial statements are useless disclaimer = I DO NOT have an opinion (a disclaimer basically say, "yes, I reviewed the financial statements but I was unable to form an opinion") |
| kingirm | is it something good ???? |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe the objective of audits of financial statements, the types of audit reports, and the importance of effective internal controls;
CFA® 2024 Level I Curriculum, Volume 2, Module 16.