Author Question: What is an unqualified audit report? a. A report stating that the auditors are not qualified to ... (Read 94 times)

gonzo233 · **on:** Jul 6, 2018

What is an unqualified audit report?

a. A report stating that the auditors are not qualified to report on a firm.
b. A report that states the financial statements are in violation of GAAP.
c. A report that states that departures from GAAP exist in the firm's financial statements.
d. A report that states the financial statements are presented fairly, in all material respects, and are in conformity with GAAP.

Question 2

Assume a company has a net income that exceeds the owner's drawing for the current year. The owner's Capital account
a. will have a zero balance after the closing entries are completed.
b. will increase.
c. will decrease.
d. will remain the same as the beginning balance.
e. It is impossible to tell with the information provided.