When Preparing the Financial Statements, It Is Acceptable for the Auditor

question 74

Multiple Choice

When preparing the financial statements, it is acceptable for the auditor to prepare:

• A) the footnotes for a client.
• B) the statements for a client.
• C) a draft of the statements and footnotes for a client.
• D) a draft of the statements for a client.

---

Definitions:

Insulator

A material used to electrically isolate two conductive surfaces.

Valence Electrons

Electrons in the outermost shell of an atom that are significant in chemical bonding and reactions.

Voltage Change

A variation in the electrical potential difference between two points in a circuit, which can cause current to flow if a path is available.

Capacitor

A device made with two conductive plates separated by an insulator or dielectric.