The Basic Elements of the Auditor's Standard Report for a Corporations

question 25

Multiple Choice

The basic elements of the auditor's standard report for a Corporations Act 2001 audit include all of the following except:

• A)a title that includes the word 'independent'.
• B)a statement that the financial report is the responsibility of the company's directors.
• C)a statement that accounting estimates are reasonable, but that there will normally be differences between estimated and actual results.
• D)a statement that an audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial report.

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Definitions:

Numbering System

A numbering system is a scheme for assigning numerical identifiers to elements in a set, used to organize and reference those elements systematically.

Bury

To place something in the ground or hide it, often as a means of concealment or to dispose of it.

Passive Verb

A verb form that indicates the subject of the sentence is the recipient of the action, rather than the performer.

Recommendation

An endorsement or suggestion about the best course of action, typically based on expertise or experience.