Question

Why is the audit report important in the analysis of a company? It guarantees the accuracy...

Why is the audit report important in the analysis of a company?

It guarantees the accuracy of the information in the financial statements.

It guarantees the accuracy of the internal controls of the company.

The auditors are hired by management to assess the appropriateness of the accounting policies chosen.

The auditors are an independent third party expressing an opinion on the fairness of the financial statements.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The correct answer is

The auditors are independent third party experssing an opinion on the fairness of the financial statements

Explanation

Audit report is important because the audit is conducted by the independent person who gives his opnion on the fairness of the financial statements. The opnion is based on the examination of books of accounts and other documents. An auditor in an indepedent person, so he is not biased.So the correct answer is

The auditors are independent third party experssing an opinion on the fairness of the financial statements

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
With regard to an audit of financial statements, which of the following is NOT true? A....
With regard to an audit of financial statements, which of the following is NOT true? A. Auditors provide reasonable assurance, but not absolute assurance through their audit opinions. B. An unqualified opinion is the "best" audit report a company can receive. C. Auditors take primary responsibility for the accuracy of a company's financial statements. D. Auditors evaluate financial statements for "fairness." E. None of the above (all of the above are true)
Which of the following is not explicitly stated within an audit report? A) A statement that...
Which of the following is not explicitly stated within an audit report? A) A statement that the auditor believes that the audit provides a reasonable basis for expressing negative assurance. B) A statement that the auditor's responsibility is to express an opinion on the financial statements. C) A statement that the financial statements in the report are the responsibility of management. D) A title with the word "independent."
Which of the following is not explicitly stated within an audit report? A) A statement that...
Which of the following is not explicitly stated within an audit report? A) A statement that the auditor believes that the audit provides a reasonable basis for expressing negative assurance. B) A statement that the auditor's responsibility is to express an opinion on the financial statements. C) A statement that the financial statements in the report are the responsibility of management. D) A title with the word "independent."
As you studied and read in chapter readings so far as well as reading the WSJ...
As you studied and read in chapter readings so far as well as reading the WSJ article posted last week, it is the responsibility of Management to apply accounting standards (GAAP/IFRS) when communicating with investors and creditors through financial statements (management assertions). 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 (a GAAS...
Operational audits generally have been conducted by internal auditors and governmental audit agencies but may be...
Operational audits generally have been conducted by internal auditors and governmental audit agencies but may be performed by certified public accountants. A primary purpose of an operational audit is to provide (1) a means of assurance that internal accounting controls are functioning as planned. (2) a measure of management performance in meeting organizational goals. (3) the results of internal examinations of financial and accounting matters to a company’ s top-level management. (4) aid to the independent auditor, who is conducting...
Which of the following is not included in an integrated audit report on the financial statements...
Which of the following is not included in an integrated audit report on the financial statements of a public company? The report states that the audit was performed in accordance with AICPA standards. The report indicates that the financial statements are the responsibility of management. The report inidcates that the auditors have also audited the effectiveness of the company's internal control. The report is signed in the name of the CPA firm.
A public company audit report is presently formatted how (excluding CAMs) a. Title with the word...
A public company audit report is presently formatted how (excluding CAMs) a. Title with the word "Independent" & addressee, Management’s Responsibility for the Financial Statements, Basis for Opinion, Opinion on the Financial Statements, Signature, Tenure, Location, and Date b. Title with the word "Independent" & addressee, Management Responsibility, Auditor’s Responsibility, Opinion on the Financial Statements, Signature, Tenure, Location, and Date c. Title with the word "Independent" & addressee, Opinion on the Financial Statements, Basis for Opinion, Signature, Tenure, Location, and...
1. Which of the following best describes the reason why independent auditors report on financial statements?...
1. Which of the following best describes the reason why independent auditors report on financial statements? A management fraud may exist and it is more likely to be detected by independent auditors. An audit provides credibility to the financial statements. A misstatement of account balances may exist and it is generally corrected as the result of the independent auditors' work. Poorly designed internal controls may be present. 2. Audits of financial statements are designed to obtain reasonable assurance of detecting...
The following audit report was drafted by a trainee on the audit of Golf (Pty) Ltd...
The following audit report was drafted by a trainee on the audit of Golf (Pty) Ltd (“Golf”), a company which manufactures golf clubs. The trainee was asked to draft the report at the conclusion of the audit for the financial year end 31 March 2017 as part of on-the-job training and you have to evaluate his report. The shareholders of Golf included a clause in the company’s Memorandum of Incorporation which requires that the company’s annual financial statements are extremely...
. For each of the matters below, indicate through the appropriate letter the group of generally...
. For each of the matters below, indicate through the appropriate letter the group of generally accepted auditing standards to which the matter is most closely related (10 points). A. General standards B. Standards of field work C. Standards of reporting (1) The mental attitude and impartiality of auditors. (2) Auditors' overall conclusion of the fairness of the client's financial statements. (3) The use of an audit program to identify audit procedures to be performed during the engagement. (4) Auditors'...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT