The Standard (Unmodified) Report Issued in the Audit of a Non-Issuer

question 72

Multiple Choice

The standard (unmodified) report issued in the audit of a non-issuer includes a(n)

• A)Responsibilities of Management for the Financial Statements Section providing a general description of an audit conducted in accordance with the applicable auditing standards.
• B)Opinion Section identifying the responsibility of management and auditors in the financial reporting process.
• C)Internal Control Section indicating the effectiveness of the entity's internal control over financial reporting.
• D)Opinion Section providing the auditors' conclusion as to the fair presentation of the financial statements.

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Definitions:

NPV

Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Yen Cash Flows

Cash flows related to financial transactions denominated in Japanese yen.

Absolute Purchasing Power Parity

A theory that states that the price of goods in different countries should be equal when measured in a common currency.

Identical Goods

Products that are exactly the same in every feature and aspect, making them interchangeable.