Question

For questions 21-25, state whether you agree or disagree with each of the following statements concerning the auditors' standard report of a non-public company. Write "Agree" or "Disagree" 21. 22. 23. The report should begin with "CPA's Report" at the top. The report is ordinarily addressed to whom it may concern". The report indicates that management is responsible for the preparation of the financial statements. The report indicates that the auditors' responsibility is to obtain absolute assurance about whether the financial statements are free of material misstatements. The report ordinarily concludes on whether the financial statements are in conformity with generally accepted accounting principles. 24. 25.

Answer 1

Auditing : Auditing is a procedure to examine and inspect the books of

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S.NO.	Exolanation	Agree or Disagree
21	The report must have a top title with a tenu "Independent" included in it.	Disagree
22	TI1e report is addressed to "Audit conunittee of the Board of Directors".	Disagree
23	Management is responsible to prepare the fmancial statements.	Agree
24	The auditor's responsibility is to obtain reasonable assurance.	Disagree
25	TI1e report concluded on whether the financial statements are in confonuity with GAAP (Generally Accepted Accounting Principles).	Disagree