Before Reaching a Final Decision on the Opinion to Be

question 70

Multiple Choice

Before reaching a final decision on the opinion to be issued, a conference generally is held with the client. At this meeting, all of the following may be expected, except:

• A) an oral report of the auditor's major findings.
• B) the auditor's rationale for proposed adjustments or additional disclosures.
• C) management's attempt to defend its position.
• D) agreement between the auditor and client on the changes to be made.
• E) delivery of the management letter.

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Definitions:

Ledger Accounts

Individual accounts within the ledger that record transactions related to a company's assets, liabilities, equity, revenue, and expenses.

Journal

A detailed record where all financial transactions of a business are initially recorded before being transferred to the accounts in the general ledger.

Transaction Recording Process

The methodical process of recording financial transactions in the books of accounts to ensure accurate financial reporting.

Journal

A chronological record of all transactions made by a company, used as the primary source of information for the financial statements.