Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

The issuance of a disclaimer of opinion generally indicates:

The financial statements are free from material misstatement.

The auditor was unable to obtain sufficient appropriate audit evidence to form an opinion on the financial statements.

The financial statements present fairly, in all material respects, the financial position of the entity.

The auditor disagrees with management about the application of accounting principles.

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Verified step by step guidance

Understand the concept of a 'disclaimer of opinion' in auditing. A disclaimer of opinion is issued by an auditor when they are unable to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion.

Review the provided options and eliminate those that do not align with the definition of a disclaimer of opinion. For example, a disclaimer of opinion does not indicate that the financial statements are free from material misstatement or that they present fairly the financial position of the entity.

Recognize that a disclaimer of opinion is not issued due to disagreements with management about accounting principles. Such disagreements typically result in a qualified or adverse opinion, not a disclaimer.

Focus on the option that states the auditor was unable to obtain sufficient appropriate audit evidence. This aligns with the definition of a disclaimer of opinion.

Conclude that the correct answer is the one indicating the auditor was unable to obtain sufficient appropriate audit evidence to form an opinion on the financial statements.