Question

Define:

1. Error:

2. Fraud:

3. Fraudulent financial reporting:

4. Misappropriation of assets:

5. Qualified opinion:

6. Adverse opinion:

7. Disclaimer:

8. Peer review:

9. System review:

10. Engagement:

Answer 1

1. Error

An error is something which is incorrect and inadequate.

2. Fraud

Fraud is an act when a person done work dishonestly. It is a crime generally for gaining money.

3. Fraudulent financial reporting

Fraudulent financial reporting means misstatement in the financial statement of the firm which is done wrongful for gaining the interest of the investors and increase profitability of the firm.

4. Misappropriation of assets

Misappropriation of assets means inappropriate use of assets by the employees or the third party. Activities involving stealing of assets and for personal use cover under Misappropriation of assets.

5. Qualified opinion

Qualified opinion means that the report does not provide true and fair view and meets GAAP accounting principles.

6. Adverse opinion

Adverse opinion is an opinion which indicates that financial statement of the firm are misstated and inaccurate.

7. Disclaimer

Generally, it is an statements specifies that you are responsible for doing something or it is act that denies something.

8. Peer review

Evaluating performance of another experts which is also engaged in the same field.