When Audited Financial Statements Are Presented in an Entity's Document

question 17

Multiple Choice

When audited financial statements are presented in an entity's document containing other information, the auditor should

• A) Perform inquiry and analytical procedures to ascertain whether the other information is reasonable.
• B) Add an explanatory paragraph to the auditor's report without changing the opinion on the financial statements.
• C) Perform the appropriate substantive auditing procedures to corroborate the other information.
• D) Read the other information to determine that it is consistent with the audited financial statements.

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Definitions:

Moral Responsibility

The obligation to act correctly and make decisions based on ethical principles, often considered in the context of social and personal conduct.

Fair Play

The adherence to equitable and impartial standards of conduct or rules in games, sports, or other competitions.

Goodwill

An intangible asset representing the value of a business's reputation, brand, and customer relationships.

Persuasive Message

Communication designed to convince or influence the audience towards a particular viewpoint or action.