Question

What does the independent auditors' report usually include?

1) Opinion on the financial statements
2) Opinion on the effectiveness of internal controls
3) Opinion on the accuracy of the financial statements
4) Opinion on the company's future prospects

Answer 1

The independent auditors' report usually includes opinions on financial statements, internal controls, and the accuracy of the financial statements.

Step-by-step explanation:

The independent auditors' report typically includes:

1. Opinion on the financial statements: The auditors provide their opinion on whether the financial statements present a true and fair view of the company's financial position, performance, and cash flows.
2. Opinion on the effectiveness of internal controls: Auditors assess and report on the effectiveness of the company's internal controls over financial reporting. This includes evaluating the design and implementation of controls to prevent and detect material misstatements.
3. Opinion on the accuracy of the financial statements: The auditors express their opinion on whether the financial statements are free from material misstatements, whether due to fraud or error.