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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.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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