When Unaudited Financial Statements of a Nonissuer Are Presented in Comparative

question 477

Multiple Choice

When unaudited financial statements of a nonissuer are presented in comparative form with audited financial statements in the subsequent year, the unaudited financial statements should be clearly marked to indicate their status and:

• A) The report on the unaudited financial statements should be reissued. II. The report on the audited financial statements should include a separate paragraph describing the responsibility assumed for the unaudited financial statements.
• B) I only.
• C) II only.
• D) Both I and II.
• E) Either I or II.

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Definitions:

Manufacturing Defect

A flaw in the production of a product that causes it to deviate from its intended design or specifications.

Design Defect

A flaw in the intentional design of a product that results in it being unsafe for its intended or reasonably foreseeable use.

Inadequate Warning

Refers to insufficient or unclear information provided about the potential risks or dangers associated with a product or activity.

Statute Of Repose

Basically, a statute of limitations that is not dependent on the happening of a cause of action. Statutes of repose generally begin to run at an earlier date and run for a longer period of time than statutes of limitations.