ABC Company Prepares Financial Statements Showing the Last Two Years,years

question 44

Multiple Choice

ABC Company prepares financial statements showing the last two years,years X and Y (Year X is the year prior to year Y) .The auditor performed an audit of year X and a review of year Y.The auditor may

• A) Report on the year Y review and reissue the year X audit report.
• B) Provide only the report concerning the year Y review.
• C) Reissue the year X audit report with an explanatory paragraph disclosing that only a review was performed on year Y.
• D) Notify the client that prior-year audited financial statements cannot be presented when the current-year statements have not been audited.

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Definitions:

In-Group Members

Individuals within a group who share a strong identity and often receive more support and rewards from the leader.

Dyadic Relationship

A two-way relationship between two entities, often highlighting the reciprocal influence they have on one another, especially in the context of leadership and followership.

LMX

A leadership theory that emphasizes the unique and dynamic relationships between leaders and each of their followers, affecting organizational and individual performance.

LMX Theory

Leadership Member Exchange theory focuses on the nature of the relationship between a leader and their followers, suggesting that leaders form unique bonds with each member, which can affect team dynamics and performance.