FINANCIAL REPORTING AND ANALYSIS
LESSON 1 QUIZ QUESTIONS WITH VERIFIED
ANSWERS NEW MODIFIED
An audit is most likely described as:
A. A review of the financial statements by an internal auditor of the entity to
check their accuracy
B. An independent review of an entity's financial statements
C. A review of the financial statements by a senior director of the entity with the
purpose of stating an opinion on their fairness and reliability --CORRECT
ANSWER--Correct Answer: B
- Neither internal auditors nor senior directors are independent and are not a part
of the audit.
If an auditor feels that a company's financial statements are not presented fairly
or significantly deviate from accounting standards, she will most likely issue
a(n):
A. Qualified opinion
B. Unqualified opinion
C. Adverse opinion --CORRECT ANSWER--Correct Answer: C
Page 1 of 12
, - When the auditing firm believes there is a significant deviation from accepted
accounting standards, it will offer an adverse opinion.
Which of the following is most accurate?
A. All information needed for financial statement analysis can be found in the
audited statements.
В. Thorough financial statement analysis must include sources beyond annual
statements and supplementary information.
C. All information needed for financial statement analysis can be found in the
audited statements and supplementary information. --CORRECT ANSWER--
Correct Answer: B
- Analyst should never rely solely on the audited financial statements or the
supplementary information. They should locate any relevant information that is
reliable and use it as part of their analysis.
The role of financial reporting is most likely:
A. To help users in making forecasts about the future performance of the
company
B. To provide information that is useful to a wide range of users in making
economic decisions
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LESSON 1 QUIZ QUESTIONS WITH VERIFIED
ANSWERS NEW MODIFIED
An audit is most likely described as:
A. A review of the financial statements by an internal auditor of the entity to
check their accuracy
B. An independent review of an entity's financial statements
C. A review of the financial statements by a senior director of the entity with the
purpose of stating an opinion on their fairness and reliability --CORRECT
ANSWER--Correct Answer: B
- Neither internal auditors nor senior directors are independent and are not a part
of the audit.
If an auditor feels that a company's financial statements are not presented fairly
or significantly deviate from accounting standards, she will most likely issue
a(n):
A. Qualified opinion
B. Unqualified opinion
C. Adverse opinion --CORRECT ANSWER--Correct Answer: C
Page 1 of 12
, - When the auditing firm believes there is a significant deviation from accepted
accounting standards, it will offer an adverse opinion.
Which of the following is most accurate?
A. All information needed for financial statement analysis can be found in the
audited statements.
В. Thorough financial statement analysis must include sources beyond annual
statements and supplementary information.
C. All information needed for financial statement analysis can be found in the
audited statements and supplementary information. --CORRECT ANSWER--
Correct Answer: B
- Analyst should never rely solely on the audited financial statements or the
supplementary information. They should locate any relevant information that is
reliable and use it as part of their analysis.
The role of financial reporting is most likely:
A. To help users in making forecasts about the future performance of the
company
B. To provide information that is useful to a wide range of users in making
economic decisions
Page 2 of 12
