An Auditor's Special Report on Financial Statements Prepared in Conformity

question 98

Multiple Choice

An auditor's special report on financial statements prepared in conformity with the cash basis of accounting should include a separate explanatory paragraph before the opinion paragraph that

• A) Justifies the reasons for departing from generally accepted principles.
• B) States whether the financial statements are fairly presented in conformity with a special purpose framework.
• C) Refers to the note to the financial statements that describes the special purpose framework.
• D) Explains how the results of operations differ from financial statements prepared in conformity with generally accepted accounting principles.

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Definitions:

Independent Labor Unions

Unions that operate independently of existing labor federations or national labor organizations, often focusing on specific workplace issues or industries.

ACFTU

The All-China Federation of Trade Unions, the national trade union organization in the People's Republic of China, serving as the umbrella organization for all Chinese trade unions.

Freedom of Association

The right of individuals to form and join groups of their own choosing, including the right to form or join labor unions.

Labor Legislation

Laws and regulations established to govern the rights and obligations of workers, employers, and unions, including standards for wages, hours, and working conditions.