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:

Unearned Revenues

A liability recorded for cash received before services are performed.

Income Statement

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

Current Maturities

The portion of long-term debt or loan obligations that is due to be paid within the coming fiscal year.

Long-term Debt

Loans or financial obligations that are due for repayment beyond the next 12 months or the current business cycle.