Assume That Auditors Prepare Separate Reports on the Entity's Financial

question 94

Short Answer

Assume that auditors prepare separate reports on the entity's financial statements and internal control over financial reporting.Following are various phrases and characteristics associated with auditors' reports.For each phrase or characteristic,indicate by letter whether the phrase or characteristic is related to the report on the entity's financial statements,report on the entity's internal control over financial reporting,both reports,or neither report.
A. Report on entity's financial statements.
B. Report on internal control over financial reporting.
C. Both reports.
D. Neither report.

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Definitions:

Instrument

A formal legal document that records a legally enforceable act, transaction, or agreement.

Bearer Instrument

A negotiable financial instrument that denotes ownership to whoever physically holds it.

Theft

The act of unlawfully taking someone else's property with the intent to permanently deprive them of it.

Negotiability

The characteristic of a written document (such as a check or bill of exchange) that ensures its transferability by endorsement or delivery.