An Auditor May Report on Condensed Financial Statements That Are

question 1035

Multiple Choice

An auditor may report on condensed financial statements that are derived from complete financial statements if the:

• A) Condensed financial statements are distributed to stockholders along with the complete financial statements.
• B) Auditor describes the additional procedures performed on the condensed financial statements.
• C) Auditor indicates whether the information in the condensed financial statements is fairly stated in all material respects in relation to the complete financial statements from which it has been derived.
• D) Condensed financial statements are presented in comparative form with the prior year's condensed financial statements.

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Definitions:

Antiassignment Clause

A provision in a contract that restricts the transfer of rights or obligations to another party without prior approval.

Operation of Law

Changes in rights or duties that take place automatically under the law, without any action by the parties involved.

Monetary Payments

Transactions involving the transfer of money from one party to another as a form of compensation or settlement.

Assignor

The party in an agreement who transfers their rights or property to another, called the assignee.