When expressing an opinion on a specified account or item in the financial statements, the auditor...
When expressing an opinion on a specified account or item in the financial statements, the auditor need only consider that account or item. However, the auditor must have audited the entire set of financial statements if this engagement requires a report on the entity's
a) net income.
b) retained earnings.
c) assets.
d) working capital.
Homework Answers
The correct answer is a) Net Income
Net Income is not a separate account or item. It is the net result of various expenses and incomes incurred and earned during the period. In order to get control and comfort over the Net Income figure the auditor must audit the entire set of Financial Statements.
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When expressing an opinion on a specified account or item in the
financial statements, the auditor...
25-20 (Objective 25-8) The following questions concern reports issued by auditors, other than those on historical...
25-20 (Objective 25-8) The following questions concern reports issued by auditors, other than those on historical financial statements. Choose the best response. a. An auditor is reporting on cash basis financial statements. These statements are best referred to in the opinion of the auditor by which of the following descriptions? (1) Cash receipts and disbursements and the assets and liabilities arising from cash transactions. (2) Financial position and results of operations arising from cash transactions. (3) Balance sheet and income...
Match each statement below with the type of audit opinion/report that would most likely be issued...
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6. When reporting on financial statements prepared on the basis of income tax accounting, the aud...
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For each of the following items, assume that Josh Feldstein, CPA, is expressing an opinion on...
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AUDITING The managing director of Pakatan Harapan Pty. Ltd asked the company' auditor: Tom Hardy to complete the audit in time to submit audited financial statements to a financial institution as...
AUDITING
The managing director of Pakatan Harapan Pty. Ltd asked the company' auditor: Tom Hardy to complete the audit in time to submit audited financial statements to a financial institution as part of a loan application. Hardy immediately accepted the engagement and agreed to provide a auditor's report within one month. The client agreed to pay the normal audit fees plus a percentage of the loan if it was granted. Hardy hired two recent accounting graduates to conduct the audit...
What type(s) of audit opinion(s) must an auditor issue when the client's financial statements are materially and pervas...
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The auditor's responsibility section of the standard audit report states that the auditor is (15 A)...
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Patel, CPA, has completed the audit of the financial statements of Bellamy Corporation as of and...
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25-20 (Objective 25-8) The following questions concern reports issued by auditors, other than those on historical financial statements. Choose the best response. a. An auditor is reporting on cash basis financial statements. These statements are best referred to in the opinion of the auditor by which of the following descriptions? (1) Cash receipts and disbursements and the assets and liabilities arising from cash transactions. (2) Financial position and results of operations arising from cash transactions. (3) Balance sheet and income...
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For each of the following items, assume that Josh Feldstein, CPA, is expressing an opinion on Scornick Company's financial statements for the year ended December 31, 2018; that he completed fieldwork on January 21, 2019, and that he now is preparing his opinion to accompany the financial statements. In each item a subsequent event is described. This event was disclosed to the CPA either in connection with his review of subsequent events or after the date on which the auditor...
AUDITING
The managing director of Pakatan Harapan Pty. Ltd asked the company' auditor: Tom Hardy to complete the audit in time to submit audited financial statements to a financial institution as part of a loan application. Hardy immediately accepted the engagement and agreed to provide a auditor's report within one month. The client agreed to pay the normal audit fees plus a percentage of the loan if it was granted. Hardy hired two recent accounting graduates to conduct the audit...
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The auditor's responsibility section of the standard audit report states that the auditor is (15 A) responsible for the financial statements and the opinion on them B) responsible for the financial statements C) responsible for the opinion on the financial statements .D) jointly responsible for the financial statements with management If the balance sheet of a private company is dated December 31, 2011, the audit report is dated February (16 8, 2012, and both are released on February 15, 2012,...
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