🎓CFA Final Prep All Topics

Filings, MD&A, and Audit Opinions

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Question

Under IFRS, what document is the rough equivalent of a US 10-K?

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Answer

The annual report.

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Question

Why is a going-concern explanatory paragraph especially important for analysts?

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Answer

It signals substantial doubt about continued operation.

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Question

What does a disclaimer of opinion usually signal to an analyst?

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Answer

The auditor could not form an opinion, often due to scope limits.

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Question

How does a qualified opinion differ from an adverse opinion?

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Answer

Qualified means fair except for one issue; adverse means not fairly presented.

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