In Making the Technical Review of the Financial Statements, the Auditor

question 16

Multiple Choice

In making the technical review of the financial statements, the auditor is likely to use a detailed financial statement checklist provided by the:

• A) client.
• B) CPA Australia.
• C) ASIC.
• D) audit firm.

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Definitions:

Goodwill Recognition

The process of accounting for the excess of purchase price over the fair value of identifiable assets and liabilities of an acquired entity.

US GAAP

United States Generally Accepted Accounting Principles, the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC).

IFRS

International Financial Reporting Standards, a set of accounting guidelines that govern how financial statements are prepared worldwide.

Reporting Units

Entities for which discrete financial information is available and reviewed by the segment manager to make operating decisions.