The Auditor's Special Report on Financial Statements Prepared on an OCBOA

question 55

Multiple Choice

The auditor's special report on financial statements prepared on an OCBOA should contain all of the following except:

• A) an introductory paragraph.
• B) a scope paragraph.
• C) an exclusion paragraph.
• D) an explanatory paragraph.
• E) an opinion paragraph.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenue.

Return On Investment

A financial metric used to evaluate the efficiency of an investment, calculating profit or loss relative to the amount of money invested.

Departmental Income Statement

A financial statement that shows the income, expenses, and net income of different departments within a company.

Contribution To Overhead

The portion of revenue that exceeds direct costs and contributes to covering a company's fixed expenses.