ASA 700 Requires That the Title of the Audit Report

question 15

Multiple Choice

ASA 700 requires that the title of the audit report:

• A) include the word 'independent'.
• B) not include any discriminatory language.
• C) indicate whether the author is a proprietorship, partnership or incorporated.
• D) indicate whether the author is a member of a professional body.

---

Definitions:

Income Tax

Taxes imposed by the government on the income generated by individuals and businesses within their jurisdiction.

Understated Inventory

A situation where the inventory's book value is reported lower than its actual value, potentially affecting financial statements adversely.

Inventory Turnover Ratio

A financial metric indicating the number of times a company's inventory is sold and replaced over a specific period.

Average Days

A term that could refer to various average time periods calculated in business contexts, such as average days in inventory, but needs more specificity to define accurately.