Which of the Following Is Not Explicitly Stated in the Standard

question 112

Multiple Choice

Which of the following is not explicitly stated in the standard unqualified audit report?

• A)The financial statements are the responsibility of management.
• B)The audit was conducted in accordance with generally accepted accounting principles.
• C)The auditors believe that the audit evidence provides a reasonable basis for their opinion.
• D)An audit includes assessing the accounting estimates used.

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Definitions:

Provincial Law

Provincial law refers to legal provisions and regulations enacted by the legislative bodies of provinces or territories, governing matters within their jurisdiction.

IFRS 3

An International Financial Reporting Standard that provides guidance on accounting for business combinations, requiring acquisition-related assets and liabilities to be recorded at fair value.

Business Combinations

Business Combinations are transactions or events through which one company gains control over one or more businesses, and such amalgamations can significantly impact the financial statements of the acquiring company.

Acquisition Method

An accounting technique used in mergers and acquisitions to consolidate the financial statements of the acquiring and acquired entities by recording assets at fair value and recognizing goodwill.