When Reporting on Financial Statements That Include Only Summarized Totals

question 169

Multiple Choice

When reporting on financial statements that include only summarized totals of account balances, the auditors' conclusion should state whether the information in the summary financial statements

• A)is complete with respect to disclosures required by the SEC.
• B)is fairly stated, in all material respects, in accordance with generally accepted accounting principles.
• C)is consistent, in all material respects, with the prior years' summary financial statements.
• D)is fairly stated, in all material respects, in relation to the complete financial statements.

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Definitions:

Empirical Research

A way of gaining knowledge by means of direct observation or experience, often involving the collection and analysis of data.

Controversy

A prolonged public dispute, debate, or contention, often involving differing opinions or viewpoints.

Scientific Research

The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.

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A controversial concept in Freudian psychoanalysis that suggests female psychosexual development involves anxiety and envy towards males for not having a penis.