For each of the following statements indicate whether the statement is true or false. a. The procedures
Question:
For each of the following statements indicate whether the statement is true or false.
a. The procedures for a compilation of financial statements include inquiries concerning a company's accounting principles and practices and the methods followed in applying them.
b. An accountant's review report would not be modified for a significant uncertainty or an inconsistent application of accounting principles that materially affect the financial statements.
c. The scope of a review of interim financial information is not influenced by the knowledge that might be obtained in an audit of the company's annual financial statements.
d. An accountant does not become associated with the financial statements of a public company unless the accountant's name is appended to the statements.
e. The auditor determines the extent of procedures to be applied in an engagement to issue a comfort letter to an underwriter based on what is necessary in the circumstances to express negative assurance.
f. Even though cash-basis financial statements are not in conformity with generally accepted accounting principles, an auditor need not express a qualified or adverse opinion on such statements.
g. If an auditor is requested to report on only the current asset section of the balance sheet, the auditor should disclaim an opinion because of the scope limitation.
h. The auditor is obliged to report on all of the information in an auditor-submitted document.
i. A public accountant may not be associated with a presentation of a company's operating results for a future accounting period.
Step by Step Answer:
Auditing Concepts And Methods A Guide To Current Auditing Theory And Practice
ISBN: 9780070099999
5th Edition
Authors: Mcgraw-Hill