Which of the Following Is True with Respect to the Auditors

question 89

Multiple Choice

Which of the following is true with respect to the auditors' report on summary financial statements?

• A)Auditors can only issue a report on summary financial statements if they have expressed an unmodified opinion on the full financial statements.
• B)The report will indicate whether the summary financial statements are fairly stated in relation to the full financial statements.
• C)The report will express negative assurance on whether the summary financial statements are prepared in accordance with AICPA presentation guidelines.
• D)The report will express an opinion on whether the summary financial statements present the financial condition,results of operations,and cash flows in accordance with generally accepted accounting principles.

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Definitions:

Payments

The act of transferring money or something of value from one party to another in exchange for goods, services, or to fulfill a legal obligation.

Borrowed

Refers to funds that have been taken from another party under the agreement that they will be repaid at a later date, often with interest.

Semi-Annual Compounding

Interest calculation on a financial instrument twice a year, adding the interest amount to the principal sum each time.

Interest

The charge for borrowing money, typically expressed as an annual percentage of the principal amount.