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If a company received a report with anything other than an unqualified opinion financial statement users should?

1) Ignore the report
2) Seek clarification from the company
3) Take legal action against the company
4) Share the report with others

User SFuller
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1 Answer

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Final answer:

Financial statement users should seek clarification from the company if the company's financial report includes anything other than an unqualified opinion. It's crucial to understand the nature of any concerns indicated by the report to make informed decisions.

Step-by-step explanation:

If a company received a report with anything other than an unqualified opinion, financial statement users should seek clarification from the company. An unqualified opinion suggests that the financial statements present a fair and accurate view of the company's financial condition and operations in accordance with the applicable financial reporting framework. If the report contains a qualified opinion, adverse opinion, or a disclaimer of opinion, it indicates concerns or limitations related to the financial information provided.

Users of financial statements should not ignore the report as this information is crucial for making informed decisions. Instead, seeking clarification can help them understand the nature of the concerns or reservations expressed by the auditors. Taking legal action might be premature without a proper understanding of the underlying issues, and sharing the report with others without context may lead to misinterpretation of the financial situation.

User Jon Miles
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