AUDIT OPINIONS ARE BASED ON HISTORICAL INFORMATION AND TYPICALLY DO NOT PROVIDE INFORMATION ON A TIMELY ENOUGH BASIS TO BE A USEFUL SOURCE OF INFORMATION ABOUT RISK

10. - CFA 2018 LEVEL 2 FRA QUESTION BANK EVALUATING QUALITY OF FINANCIAL REPORTS QBANK 10. - CFA 2018 LEVEL 2 FRA QUESTION BANK EVALUATING QUALITY OF FINANCIAL REPORTS QBANK 10. - CFA 2018 LEVEL 2 FRA QUESTION BANK EVALUATING QUALITY OF FINANCIAL REPORTS QBANK
CFA 2018 LEVEL 2 FRA QUESTION BANK EVALUATING QUALITY OF FINANCIAL REPORTS QBANK

10. Statement 1: Audit opinions are based on historical information and typically do not provide

information on a timely enough basis to be a useful source of information about risk.

Statement 2: A change in the auditor, especially multiple changes in the auditor, can be a

signal of possible reporting problems.

A. Only statement 1 is correct.

B. Only statement 2 is correct.

C. Both statements are correct.

Solutions