Audit and Assurance Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for your Audit and Assurance Exam with our comprehensive quizzes. Test your knowledge with multiple choice questions, each with detailed explanations and insights. Ace your exam and boost your career!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What type of opinion will result when an audit finds no material violations of GAAP?

Qualified opinion
Adverse opinion
Unqualified opinion
Disclaimer opinion

The correct answer is: Unqualified opinion

An unqualified opinion is the type of opinion issued when an audit finds that financial statements are presented fairly and in accordance with generally accepted accounting principles (GAAP), without any material misstatements or violations. This opinion indicates that the auditor has no reservations about the accuracy of the financial statements and that they conform to the applicable accounting standards. An unqualified opinion is often considered a "clean" opinion and reflects that the auditor believes the financial statements are reliable, allowing stakeholders to trust the information being provided. This type of opinion is crucial for maintaining the credibility of the financial statements and the organization. In contrast, a qualified opinion would denote that there are certain exceptions or issues found in the financial statements, while an adverse opinion indicates that the financial statements do not present a true and fair view and are materially misstated. A disclaimer opinion arises when the auditor cannot express an opinion on the financial statements due to insufficient evidence or other reasons. Thus, the unqualified opinion is the only one that signifies full compliance with GAAP without any noted issues.