Question

Who was the auditor that gave unqualified opinions?

1) Arthur Anderson
2) John Smith
3) Jane Doe
4) Michael Johnson

Answer 1

Arthur Anderson because Arthur Andersen gave unqualified opinions but faced severe repercussions due to the Enron scandal. Thus the correct option is 1) Arthur Anderson.

Step-by-step explanation:

Arthur Andersen, the accounting firm, was famously known for providing unqualified opinions in its audit reports. An "unqualified opinion" implies that the financial statements audited by Arthur Andersen were presented fairly and in accordance with generally accepted accounting principles (GAAP). However, despite giving unqualified opinions, Arthur Andersen was involved in one of the most significant accounting scandals in history—the Enron scandal. The firm's failure to detect and report irregularities in Enron's financial statements led to questions about its credibility and raised concerns about the effectiveness of its audits. Consequently, Arthur Andersen faced severe repercussions, including being charged with obstruction of justice and ultimately leading to the dissolution of the firm. Despite previously issuing unqualified opinions, the aftermath of the scandal severely tarnished its reputation and highlighted the importance of thorough auditing practices and ethical conduct within the accounting profession.

Thus the correct option is 1) Arthur Anderson.

Answer 2

The best option among the given choices cannot be determined without additional context, as any competent auditor can issue an unqualified opinion. Arthur Andersen is historically noteworthy for its involvement in the Enron scandal.

So, the best annswer is 5, none of them.

Step-by-step explanation:

The question seems to be related to a specific historical instance of an audit firm or auditor providing an unqualified opinion.

An unqualified opinion is an independent auditor's judgment that a company's financial records and statements are fairly and appropriately presented, and in accordance with Generally Accepted Accounting Principles (GAAP).

Without more context, it's not possible to determine which of the individuals listed is associated with issuing an unqualified opinion, as this can be done by any competent auditor.

However, Arthur Andersen was a well-known audit firm that fell into disrepute after the Enron scandal, where it was found to have issued unqualified opinions on Enron's financial statements, which later turned out to be materially misstated.

So, the best annswer is 5, none of them.

Q: Who was the auditor that gave unqualified opinions?

1) Arthur Anderson

2) John Smith

3) Jane Doe

4) Michael Johnson

5) none of them.