Question
1) An auditors report on financial statements prepared in accordance with the income tax basis of accounting should include all of the following except A)
1) An auditors report on financial statements prepared in accordance with the income tax basis of accounting should include all of the following except
A) Reference to the note to the financial statements that describes the basis of accounting.
B) An opinion as to whether the financial statements are presented fairly, in all material respects, in accordance with the basis of accounting used for income tax purposes.
C) An opinion as to whether the basis of accounting used is appropriate under the circumstances.
D) A statement that the basis of accounting is other than GAAP.
2) An accountant agreed to perform a compilation of a companys financial statements under Statements of Standards for Accounting and Review Services (SSARSs). During fieldwork, the accountant decided to perform some analytical procedures. Which of the following would the accountant do related to the compilation engagement?
A) Withdraw from the engagement because review procedures were performed on a compilation engagement.
B) Issue a review report because review procedures were performed.
C) Issue an audit report because audit procedures were performed.
D) Issue a compilation report even though review procedures were performed on the engagement.
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