The Appropriate Date for the Audit Report Is the One

question 46

Multiple Choice

The appropriate date for the audit report is the one on which the:

• A) auditor signs the report.
• B) auditor and client entered into a contract.
• C) client's financial year ended.
• D) auditor types and delivers the report to client.

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Definitions:

Statement Of Retained Earnings

This is a financial statement that outlines the changes in retained earnings for a specific period, factoring in net income and dividends.

Income Statement

A financial statement that shows a company's revenues and expenses over a particular period, culminating in its net income or loss.

Cumulative

Referring to something that increases or accumulates over time, such as cumulative voting rights or cumulative dividends.

Stated Value

A value assigned to no-par value stock by the issuing company's board of directors to serve as the stock's legal capital.