An Auditor's Report Contains the Following Sentences: We Did Not

question 1003

Multiple Choice

An auditor's report contains the following sentences: We did not audit the financial statements of JK Co., a wholly owned subsidiary, which statements reflect total assets and revenues constituting 17 percent and 19 percent, respectively, of the related consolidated totals. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for JK Co., is based solely on the report of the other auditors. These sentences:

• A) Are an improper form of reporting.
• B) Divide responsibility.
• C) Disclaim an opinion.
• D) Qualify the opinion.

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Definitions:

Financial Aid

Funding that is available to students to help cover the cost of higher education, including scholarships, grants, and loans.

Tuition

The fee charged for instruction or teaching, typically for courses at a school, college, or university.

On-Campus

Located within the grounds of a college or university.

Off-Campus

Referring to activities, housing, or locations that are not located within the grounds of a college or university.