What Is the Auditor's Responsibility for the Schedule of Expenditures

question 11

Multiple Choice

What is the auditor's responsibility for the Schedule of Expenditures of Federal Awards?

• A) No responsibility for this Schedule.
• B) Report on the Schedule without issuing an opinion.
• C) Express an opinion on the fair presentation of the Schedule.
• D) Express an opinion on the fair presentation of the Schedule in relation to the basic financial statements taken as a whole.

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Definitions:

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a company, including issuing debt and equity.

Note Payable

A written promise to pay a specific sum of money to a bearer or a specified person at a future date or on demand.

Cash Dividends

Profits paid out to shareholders by a corporation based on the number of shares they own.

Statement of Cash Flows

A report detailing how modifications in balance sheet accounts and earnings influence cash and cash equivalents.