When an Auditor Reports on a Financial Report Summarising Its

question 26

Multiple Choice

When an auditor reports on a financial report summarising its annual audited financial report, the auditor's report should:

• A) not express an opinion on whether the report is presented in conformity with the comprehensive basis of accounting used.
• B) disclose that the report is not intended to conform with generally accepted accounting principles.
• C) disclaim an opinion on whether the report was examined in accordance with generally accepted auditing standards.
• D) include an explanation of how the results of operations differ from the cash receipts and disbursements basis of accounting.

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Definitions:

Mail Source

The origin or sender of a piece of mail or package.

Revenues And Profits

Financial terms where 'revenues' refer to the total income generated from normal business operations, and 'profits' signify the remaining income after all expenses have been deducted.

Intermediate Court

A level of court between the lower courts and the highest courts, typically involved in hearing appeals from decisions of lower courts.

Jointly And Severally Liable

A legal term describing a situation where two or more parties can be held responsible individually or together for a debt or liability.