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Can someone please help me with the answers? Thank you The introductory paragraph an auditor's report contains the following: We did not audit the financial
Can someone please help me with the answers?
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The introductory paragraph an auditor's report contains the following: We did not audit the financial statements of Ex Inc., a wholly subsidiary, which statements reflect total assets and revenues constituting 32% and 30 % respectively, of the related consolidated totals, These statements were audited by other auditors whose report has been furnished to us, and our opinion insofar as it relates to the amounts included foe Ex Inc., is based solely on the report of other auditors. These sentences a. Indicate a division of responsibility b. B. assume responsibility for the other auditor c. C. require a departure from an unqualified opinion d. D. are an improper form of reporting An auditor may issue the standard auditor's report when the a. auditor refers to the findings of a specialist b. financial statements include the results of the parent's subsidiary c. financial statements are prepared on the cash basis of accounting d. auditors takes responsibility for the work of another auditor Aero Inc. uses FIFO international subsidiary's inventory and LIFO for its domestic inventory. Under these circumstances, the auditor's report on Aero's financial statements should express an a. unqualified opinion b. qualified opinion because of a lack of consistency c. qualified opinion because of a departure from GAAP d. adverse opinion The report on a review engagement provides a. negative assurance b. positive assurance c. Opinion d. Summary of findings A compilation report is not required when financial statements are a. expected to be used by management only b. expected to be used by management and third parties c. expected to be used by third parties only d. a compilation report is always required An accountant who only reviews the financial statements issues a report stating that a. a review is substantially less in scope than an audit b. a review provides negative assurance that internal control is functioning c. a review provides limited as that the financial statements present fairly d. a review is substantially more in scope than a compilationStep by Step Solution
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