Abbot, CPA, as Principal Auditor for Consolidated Financial Statements, Is

question 55

Multiple Choice

Abbot, CPA, as principal auditor for consolidated financial statements, is using a qualified report of another auditor. Abbot does not consider the qualification material relative to the consolidated financial statements and Abbot is willing to accept responsibility for the work of the other auditor. What recognition, if any, must Abbot make in his report to the report of the other audit?

• A)He need make no reference.
• B)He must refer to the qualification of the other auditor and qualify his report likewise.
• C)He must include the other auditor's report with his report but need not qualify his report.
• D)He must include the other auditor's report with his report and give an explanation of its significance.

Understand the support systems available for small businesses, including business incubators and development centers.

Recognize the significance of strategic, entrepreneurial, and financial leadership in the growth of a business.

Understand the concept of first-mover advantage and its impact on business success.

Recognize the importance of a business plan and the key components it should contain.

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Definitions:

Transfer Case

An auxiliary transmission used to split drive torque from the main transmission between rear and forward drive axles. Also known as a dropbox.

Differential Carrier

The housing that encloses the differential assembly in a vehicle, supporting the gears that allow the wheels to rotate at different speeds.

Backlash

The play or slop between mating mechanical parts, such as gears, which is the result of gaps between parts.

Meshing Gears

The process where the teeth of two or more gears come into contact with each other in order to transmit power from one shaft to another.