In the Audit of a Corporate Tax Return,the Report Provided

question 54

Multiple Choice

In the audit of a corporate tax return,the report provided by the Canada Revenue Agency auditor would describe

• A)an opinion on the likelihood of tax return error.
• B)the likely accounting errors that could contribute to tax errors.
• C)management issues with respect to accurately reporting taxes.
• D)that the corporate income tax return is in compliance with the Income Tax Act.

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Definitions:

FOB Destination

A shipping term indicating that the seller bears the freight charges and retains ownership of goods in transit until they are delivered to the buyer.

FOB Shipping Point

A term used in shipping agreements indicating that the buyer takes ownership and responsibility for goods at the moment they are shipped.

Specific Identification Method

An inventory costing method where each item in inventory is individually identified and valued, suitable for unique or expensive items.

Income Manipulation

Practices that adjust the way income is recorded or reported to present financial results in a misleadingly favorable light.