Below Is a Sample of the Auditor's Opinion Section of a Standard

question 57

Essay

Below is a sample of the auditor's opinion section of a standard audit report for Gawronski's Hockey Manufacturing Company, a private company.There are two errors in this report.Describe the errors.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Gawronski's Hockey Manufacturing Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for the years then ended in accordance with auditing standards generally accepted in the United States of America.
Keith Christy, Partner
Adrian, Michigan
February 15, 2023

---

Definitions:

Autonomous Consumption

The level of spending on goods and services that occurs even when income is zero, representing non-discretionary, baseline consumption.

Disposable Income

The financial stipend available to households for spending and saving endeavors after income taxes are considered.

Autonomous Consumption

The level of consumption expenditure that occurs when income levels are zero, reflecting the basic level of consumption that does not depend on current income.

APS

An acronym for Average Propensity to Save, which is the ratio of savings to the total net disposable income.