The Reporting Standards Require That the Auditor Explicitly Report on Whether

question 20

Multiple Choice

The reporting standards require that the auditor explicitly report on whether the financial statements:

• A)Contain adequate disclosure of all material matters.
• B)Are in accordance with GAAP.
• C)Used principles that are appropriate for the circumstances.
• D)Were prepared on a consistent basis with the comparative year.

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Definitions:

Branches of Government

The division of government into separate and independent units with distinct responsibilities, typically including the executive, legislative, and judicial branches.

Legislative

Relating to a legislature or law-making body, legislative involves the process of crafting, enacting, and amending laws and statutes.

Commerce Clause

A provision of the U.S. Constitution (Article I, Section 8, Clause 3) that gives Congress the power to regulate commerce with foreign nations, and among the several states, and with the Indian tribes.

Import-Export Clause

A provision in the United States Constitution that prohibits states from imposing taxes or duties on imports and exports, with certain exceptions.