The Objective of a Review of Interim Financial Information of a Public

question 31

Multiple Choice

The objective of a review of interim financial information of a public entity is to provide an accountant with a basis for reporting whether:

• A) A reasonable basis exists for expressing an updated opinion regarding the financial statements that were previously audited.
• B) Material modifications should be made to conform with generally accepted accounting principles.
• C) The financial statements are presented fairly in accordance with standards of interim reporting.
• D) The financial statements are presented fairly in accordance with generally accepted accounting principles.

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Definitions:

Underground Storage Tanks

Containers located below ground surface, used for storing liquids or gases and subject to environmental regulation.

Environmental Impact Statement

A detailed document required by law that outlines the effects of a proposed project or development on the environment.

Polluter and User Pay

A principle stating that those who produce pollution or use resources should bear the costs of managing it to prevent environmental degradation.

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization to fund various public expenditures.