The Following Audit Report Was Issued by the CPA Firm

question 77

Essay

The following audit report was issued by the CPA firm of Wong and Lee on a basic set of financial statements:(0) We have examined the accompanying balance sheet of X Company as of December
31, 19XX, and the related statements of (1) income and retained earnings for the year then ended. These financial statements are the responsibility of the Company's (2) board of directors. Our responsibility is to express an opinion on these financial statements based on our (3) examination.
We conducted our audit in accordance with (4) professional auditing standards. Those
standards require that we (5) plan and perform the audit to obtain reasonable assurance about whether the financial statements (6) are fairly stated. An audit includes examining, (7) on a detailed basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes (8) judging the accounting practices used and significant (9) decisions made by management, as well as evaluating the (10) completeness of the financial statement presentation. We believe that our audit provides (11) reliable evidence for our opinion.
(12) We believe the financial statements referred to above (13) present fairly, in all
respects, the financial position of X Company as of December 31, 19XX, and (14) the results of its operations and its cash flows for the year then ended (15) in conformity with promulgated accounting principles.
REQUIRED: If the wording of each numbered item is correct, enter OK. If the wording is incorrect, give the correct wording.
Answer (0) is given as an example.
(0) We have audited.

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Definitions:

Loop Of Henle

A section of the nephron in the kidney that concentrates urine and reabsorbs water and ions.

Reabsorption

The process by which the kidneys filter and then absorb back into the blood certain substances or water from the urine.

Tubule

A Tubule is a small tube-like structure in the body or cells that serves various functions, such as transport or absorptive roles.

Potassium Ions

Electrically charged particles (ions) of potassium, vital for various biological processes including nerve signal transmission and muscle contraction.