After an audit, the financial statements are the responsibility of:
After an audit, the financial statements are the responsibility of:
I. the independent auditor
II. the management of the reporting company
Homework Answers
II. only Financial statements are the responsibility of the management of the reporting entity.
The responsibility of the auditor is to express an opinion on those statements based on an audit. Even after the audit is completed and the opinion expressed, financial statements are still the responsibility of the management of the entity. The responsibility of the independent auditor is to express an opinion on those statements based on an audit.
The management's responsibility section of the standard audit report for a non-public company states that the...
The management's responsibility section of the standard audit report for a non-public company states that the financial statements are: A the responsibility of management. B. the joint responsibility of management and the auditor c. the responsibility of the auditor. o none of the above.
It is the responsibility of management to apply accounting standards when communicating with investors and creditors...
It is the responsibility of management to apply accounting standards when communicating with investors and creditors through financial statements. Another group, auditors, serves as an independent intermediary to help ensure that management has in fact appropriately applied GAAP in preparing the company's financial statements. Auditors examine (audit) financial statements to express a professional, independent opinion. The opinion reflects the auditors' assessment of the statements' fairness, which is determined by the extent to which they are prepared in compliance with GAAP....
6-27 (Objectives 6-10, 6-30) Auditors provide “reasonable assurance” that the financial statements are "fairly stated, in...
6-27 (Objectives 6-10, 6-30) Auditors provide “reasonable assurance” that the financial statements are "fairly stated, in all material respects." Questions are often raised as to the responsibility of the auditor to detect material misstatements, including misappropriation of assets and fraudulent financial reporting. ксчиси a. Discuss the concept of "reasonable assurance” and the degree of confidence that financial statement users should have in the financial statements. b. What are the responsibilities of the independent auditor in the audit of financial statements?...
Indicate which changes would require an explanatory paragraph in the audit report. O A. Changes in...
Indicate which changes would require an explanatory paragraph in the audit report. O A. Changes in reporting entities, such as the inclusion of an additional company in the combined financial statements Yes The CPA makes reference to the work of another auditor to indicate shared responsibility in an unqualified opinion. No OB. Changes in reporting entities, The CPA makes reference to the such as the inclusion of an work of another auditor to additional company in the indicate shared responsibility...
s According to the standard unqualified audit report, primary responsibility for the financial statements lies with:...
s According to the standard unqualified audit report, primary responsibility for the financial statements lies with: A The auditors. B) The client's management. oBoth the auditors and the client's management. oThe client's shareholders.
Sub: Advanced Auditing Topics Group audit applies to audit engagements for group financial statements, in particular...
Sub: Advanced Auditing Topics Group audit applies to audit engagements for group financial statements, in particular those in which part of the work related to the financial statements on which the principal auditor is reporting is performed by other auditors (component auditors). How can the principal auditor report on the component auditor’s contribution?
What is an auditor's responsibility for supplementary information that is outside the basic financial statements but...
What is an auditor's responsibility for supplementary information that is outside the basic financial statements but required by the FASB? Group of answer choices The auditor has no responsibility for required supplementary information as long as it is outside the basic financial statements. The auditor's only responsibility for required supplementary information is to determine that such information has not been omitted. The auditor should apply certain limited procedures to the required supplementary information and add an other-matter paragraph to the...
Management of an organization has the responsibility for all of the following except A. preparing financial...
Management of an organization has the responsibility for all of the following except A. preparing financial statements and disclosures B.designing and assessing internal controls over financial reporting C. applying accounting principles used in financial reporting D. hiring an external auditor
It is always a good idea for auditors to begin an audit with a professional skepticism...
It is always a good idea for auditors to begin an audit with a professional skepticism characterized by the assumption that O a potential conflict of interest always exists between the auditor and the management of the enterprise under audit. O in audits of financial statements, the auditor acts exclusively in the capacity of an auditor O the professional status of the independent auditor imposes commensurate professional obligations. O financial statements and financial data are verifiable. When Auditee Company prohibits...
Casa Royale, Inc., a public company, retains Ying and Company CPA to audit its financial statements...
Casa Royale, Inc., a public company, retains Ying and Company CPA to audit its financial statements and internal control. Howard Smythe, the partner in charge of the audit, drafted the following unqualified report: Report of Independent Registered Public Accounting Firm (Comment a) To the shareholders and the board of directors (Comment b) of Casa Royale, Inc. Opinion on the Financial Statements We have audited the accompanying balance sheets of Casa Royale, Inc. (the "Company") as of December 31, 20X7 and...
The management's responsibility section of the standard audit report for a non-public company states that the financial statements are: A the responsibility of management. B. the joint responsibility of management and the auditor c. the responsibility of the auditor. o none of the above.
6-27 (Objectives 6-10, 6-30) Auditors provide “reasonable assurance” that the financial statements are "fairly stated, in all material respects." Questions are often raised as to the responsibility of the auditor to detect material misstatements, including misappropriation of assets and fraudulent financial reporting. ксчиси a. Discuss the concept of "reasonable assurance” and the degree of confidence that financial statement users should have in the financial statements. b. What are the responsibilities of the independent auditor in the audit of financial statements?...
Indicate which changes would require an explanatory paragraph in the audit report. O A. Changes in reporting entities, such as the inclusion of an additional company in the combined financial statements Yes The CPA makes reference to the work of another auditor to indicate shared responsibility in an unqualified opinion. No OB. Changes in reporting entities, The CPA makes reference to the such as the inclusion of an work of another auditor to additional company in the indicate shared responsibility...
s According to the standard unqualified audit report, primary responsibility for the financial statements lies with: A The auditors. B) The client's management. oBoth the auditors and the client's management. oThe client's shareholders.
Management of an organization has the responsibility for all of the following except A. preparing financial statements and disclosures B.designing and assessing internal controls over financial reporting C. applying accounting principles used in financial reporting D. hiring an external auditor
It is always a good idea for auditors to begin an audit with a professional skepticism characterized by the assumption that O a potential conflict of interest always exists between the auditor and the management of the enterprise under audit. O in audits of financial statements, the auditor acts exclusively in the capacity of an auditor O the professional status of the independent auditor imposes commensurate professional obligations. O financial statements and financial data are verifiable. When Auditee Company prohibits...
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