In Which of the Following Circumstances May Auditors Issue a Standard

question 20

Multiple Choice

In which of the following circumstances may auditors issue a standard report on the entity's financial statements?

• A) The entity changed accounting principles having an immaterial effect on the entity's financial position, results of operations, and cash flows.
• B) The auditors wish to emphasize a matter regarding the financial statements.
• C) The financial statements are affected by a departure from a generally accepted accounting principle explained and justified by Rule 203 of the AICPA Code of Professional Conduct.
• D) The auditors have not been able to audit a substantial portion of the balance sheet because of a circumstance-imposed scope limitation.

Apply journal entry preparation skills for cash transactions, including cash collections and petty cash fund management.

Identify and explain the components of a bank reconciliation and its importance.

Assess internal control procedures over cash and identify strengths and weaknesses.

Analyze transactions for proper accounting treatment and recognize warning signs of irregular activities.

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