FIN 590 Types and Components of Audits Question 3

Unqualified audit reports contain several components that make them unqualified. These components are key to understanding the nature of these reports. The following components are present in unqualified audit reports:
• A conclusion of the auditors that the financial statements are presented fairly
• A conclusion of the auditor that the financial statements have been prepared in compliance with generally accepted accounting principles and statutory requirements
• A clean report which refers to the idea that changes in the accounting policies and practices have been divulged
• An unbiased opinon of the financial statements that neither reflects negatively or positively the health of the company but rather its current finances.

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