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1- Users of audited financial statements include- a- Management b- Fin.pdf

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Users of audited financial statements include management, financial institutions, and retired employees. Auditors must be independent in both fact and appearance. An unqualified audit opinion is issued when the external auditor has no reservations about the financial statements or internal controls. The reliability of an audited report depends on whether it concludes the statements fairly represent the company's operations. Professional skepticism helps auditors question assertions made in audited financial statements.

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1. Users of audited financial statements include: a. Management b. Financial Institutions c. Retired Employees d. All of the above e. Only a and b above. 2. T/F. Auditors must not only be independent in fact, but they must also be independent in appearance. 3. T/F. When the external auditor has no reservations about management's financial statement or internal controls, the auditor will issue an unqualified audit opinion. 4. T/F. The reliability of audited report mostly depends on whether auditor concludes, in the report, that the audited financial statements represent fairly and truthfully the operations of the audited company. 5. T/F. Professional skepticism helps the external auditor to question every assertion made in the financial statements that are audited.

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