An Independent Accountant's Report Is Based on a Review of Interim

question 1040

Multiple Choice

An independent accountant's report is based on a review of interim financial information. If this report is presented in a registration statement, a prospectus should include a statement clarifying that the:

• A) Accountant's review report is not a part of the registration statement within the meaning of the Securities Act of 1933.
• B) Accountant assumes no responsibility to update the report for events and circumstances occurring after the date of the report.
• C) Accountant's review was performed in accordance with standards established by the Securities and Exchange Commission.
• D) Accountant obtained corroborating evidence to determine whether material modifications are needed for such information to conform with GAAP.

---

Definitions:

Deposit Slip

A written form that lists cash and checks being deposited in a bank account and cash received from the amount being deposited.

Currency

A system of money in general use in a particular country, representing the medium of exchange for goods and services.

Check Register

A place for recording important information about each transaction.

Cash Balance

The amount of cash on hand or in a bank account that is immediately available for use.