Question

changes in recharges in reporting entities, such as the inclusion of an additional company in combined...

changes in recharges in reporting entities, such as the inclusion of an additional company in combined financial statements, affect comparability but not consistency, and therefore do not require an explanatory paragraph in the audit report.

a false
b true

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer :-

The audit should include an explanatory paragraph in an unmodified opinion audit report when the audit is completed with satisfactory results and the financial statements are fairly presented, but the auditor believes it is important to draw the reader's attention to certain matters.

In the given case changes in reporting entities also change in the comparability of company combined financial statements but not the consistency. So this is not required explanatory paragraph.

So, this statement is true.

Correct answer is option "b" true.

Thank you.

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
For each of the following brief scenarios, assume that you are the CPA reporting on the...
For each of the following brief scenarios, assume that you are the CPA reporting on the client’s non-public financial statements. Using the form included in this problem, describe the reporting circumstance involved, the type or types of opinion possible in the circumstance, and the appropriate report alterations. Since more than one report may be possible in several of the circumstances, a second “type of opinion” and “report alteration” row is added for each circumstance. For example, if a problem does...
auditor's responsibility section of the standard unmodified opinion audit report under US GAAS states: A. That...
auditor's responsibility section of the standard unmodified opinion audit report under US GAAS states: A. That the audit is designed to obtain reasonable assurance as to whether the financial statements are free of material misstatement whether due to fraud or error B. that the procedures performed were specified by generally accepted auditing standards C. that the financial statement audit includes procedures sufficient to express an opinion on whether the companyÕs internal control over financial reporting is effective D. all of...
Identify whether the changes described in each of the cases below require recognition in the CPA’s...
Identify whether the changes described in each of the cases below require recognition in the CPA’s audit report as to consistency. (Assume that the amounts are material.) YES or NO (a) The company changed its inventory method to FIFO from weighted-average, which had been used in prior years. (b) The company disposed of one of the two subsidiaries that had been included in its consolidated statements for prior years. (c) The estimated remaining useful life of plant property was reduced...
TRUE OF FALSE ? 1. ____ The Howard Company has exceptionally good internal control. The quality...
TRUE OF FALSE ? 1. ____ The Howard Company has exceptionally good internal control. The quality of that internal control has no effect on the work of the company’s independent auditor. 2. ____ An accountant becomes a CPA based on federal rules and regulations. 3. ____ A person who works as an accountant for a significant number of years becomes known as a CPA. 4. ____ The SEC is the current accounting standard-setting body in the United States. 5. ____...
1. The accounts receivable of Smith Company have a total book value of $120,000. An auditor...
1. The accounts receivable of Smith Company have a total book value of $120,000. An auditor has selected an audit sample of accounts with a total book value of $1,000 and an audited value of $1,200. Extrapolating this deviation over the entire population would result in an estimated total audited value of: a. $144,000 b. $140,000 c. $120,000 d. $100,000 2. Which of the following is only applicable to a public company audit report? a. A public company report is...
The following are not business combination transactions of entities under common control The parent company exchanges...
The following are not business combination transactions of entities under common control The parent company exchanges its ownership in a portion of the net assets of its subsidiary for additional shares issued by another subsidiary. The parent company transfers a portion of the net assets of its subsidiary to the assets of the parent The parent company purchases the net assets or part of the ownership rights of non-controlling shareholders The parent company transfers part of its ownership rights in...
1. To support the reported doubtful accounts balance, company officials must obtain sufficient evidence asserting the...
1. To support the reported doubtful accounts balance, company officials must obtain sufficient evidence asserting the fair presentation of the amount reported. True or False 2. Companies that have an audit may be able to borrow money at lower interest rates. True or False 3. Wild Cart Inc. made sales of $730,000 during Year Two. Cash of $720,000 was collected and no accounts were written off as uncollectible.   The beginning balance of accounts receivable was $20,000. Calculate the age of...
You are the manager in charge of the audit of Nananom Company, a public limited liability...
You are the manager in charge of the audit of Nananom Company, a public limited liability company which manufactures specialist equipment and costumes for use in Kumahwood and Nafftti films in Ghana. Audited revenue is Ghc 100 million with profit before tax of Ghc 6.25 million. Audit work up to but not including, the obtaining of written representations has been completed. A review of the audit file has disclosed the following outstanding point: Kumahwood Nananom Company is facing a potential...
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...
48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63...
48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 QUESTION 1 All of the following are management’s objectives in designing effective internal controls over financial reporting (ICFR) except for ______________ ? a. Comply with section 404 of the Sarabanes Oxley (SOX) act. b. Producing accurate and complete financial statements and other reports to make operational decisions. c. Ensure reliability of financial reporting d. Management review of the year-end financial statements to ensure proper...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT