Which of the Following Statements Is Not Correct

question 13

Multiple Choice

Which of the following statements is not correct?

• A) The auditor is required to read other information accompanying the financial report to ensure that there are no inconsistencies.
• B) The auditor may provide advice on accounting matters but the financial report and related disclosures are the entity's responsibility.
• C) Towards the end of the audit the auditor should examine all related-party transactions.
• D) Second-partner reviews are only required of the financial reports of public companies.

---

Definitions:

Open Purchase Orders

These are purchase orders issued by a business that have not yet been fulfilled or invoiced by the supplier.

Physical Inventory Worksheet

A document used to record the actual count of physical inventory on hand at a specific point in time.

Purchase Orders

Purchase orders are formal documents issued by a buyer to a seller, specifying types, quantities, and agreed prices for products or services.

Financial Statements

Comprehensive reports that detail an entity's financial activity and current financial condition, including the balance sheet, income statement, and cash flow statement.