Indicate whether each of the following statements about the auditor's role in financial accounting is true or false.a)________ A financial audit guarantees the accuracy of all amounts reported on the financial statements.b)________ A financial audit is a detailed examination of a company's financial statements and underlying accounting records.c)________ The primary responsibility of the independent accounting firm is to the public.d)________ The most favorable type of audit report is called a qualified opinion.e)________ The ultimate responsibility for the financial statements lies with management of the company rather than the independent accounting firm.

Question

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b)True c)True d)False e)T. An unqualified opinion, despite its negative-sounding name, is the most favorable opinion auditors can express. It means the auditor believes the financial statements are in compliance with GAAP without material qualification, reservation, or exception.e)This is true. The ultimate responsibility for financial statements rests with the executives of the reporting company.

Indicate Whether Each of the Following Statements About the Auditor's