An auditor issues an audit report that expresses three opinions.Which of the following is not one of those opinions?
A)whether management's assessment of the company's internal control over its financial reporting is appropriate
B)whether management's assessment that the financial statements are based upon the proper use of GAAP
C)whether the company maintained effective internal control over its financial reporting
D)whether the company's financial statements present fairly the results of operations and cash flows in conformity with GAAP

Question

Quizplus · Accepted Answer

CThe auditor's report typically includes an opinion on the fairness of the financial statements' presentation in accordance with GAAP (D) and may include an opinion on the effectiveness of internal control over financial reporting (C). However, it does not directly address management's assessment of the proper use of GAAP in the financial statements (B), as this is implicit in the opinion on the financial statements themselves. The option regarding management's assessment of the company's internal control (A) is also not a standard opinion provided in an auditor's report; instead, the auditor directly opines on the effectiveness of internal controls.

An Auditor Issues an Audit Report That Expresses Three Opinions