Which of the true about audit reports

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Question - Audit reports sometimes include explanatory language that does not result in a "qualified" opinion -- that is the explanatory language can exist alongside a clean "unqualified" opinion. Which of the following is true about audit reports that include explanatory language?

a. During the 2000-2009 time period, the presence of several kinds of explanatory language was predictive of a lower risk of subsequent restatement of the financial statements.

b. During the 2000-2009 time period, the use of explanatory language occurred in nearly 90% of audit reports among USA public companies.

c. During the 2000-2009 time period, the use of explanatory language occurred rarely, i.e., in less than 3% of audit reports among USA public companies.

d. During the 2000-2009 time period, the presence of several kinds of explanatory language was predictive of a higher risk of subsequent restatement of the financial statements.

Reference no: EM132674425

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