Deck 2: Introduction to Financial Statements and Other Financial Reporting Topics

Answer 1

a. Unqualified opinion with explanatory paragraph
b. Unqualified opinion with explanatory paragraph
c. Unqualified opinion
d. Adverse opinion
e. Qualified opinion

Answer 2

The responsibility for the preparation and integrity of financial statements rests with management. The auditor simply examines them for fairness, conformity with GAAP, and consistency.

Answer 3

The basic purpose of the integrated disclosure system is to achieve uniformity between annual reports and SEC filings. It is hoped that this will improve the quality of disclosure and lighten the disclosure load for the companies reporting.