Hart,CPA Is Auditing the Year 2 Financial Statements of Kell

question 91

Multiple Choice

Hart,CPA is auditing the year 2 financial statements of Kell Co.Previously,Hart audited Kell's year 1 financial statements and expressed a qualified opinion due to a scope limitation.Hart decides to include an other-matter paragraph in the year 2 report because comparative financial statements are being presented for year 2 and year 1.This paragraph should indicate the

• A)Substantive reasons for the prior year's qualification.
• B)Reason that Hart continued to provide audit services,despite the previous scope limitation.
• C)Consistency of application of accounting principles between year 2 and year 1.
• D)Restriction on the distribution of the report.

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Definitions:

United Nations

An international organization founded in 1945, composed of sovereign states, aimed at promoting peace, security, and cooperation among nations.

Acceptance To A Contract

The act of agreeing to the terms of a contract, thereby completing the process of its formation.

Additional Terms

Additional clauses or stipulations added to a contract or agreement that are not part of the original proposal or negotiation.

Merchant

A person who is engaged in the purchase and sale of goods. Under the Uniform Commercial Code, a person who deals in goods of the kind involved in the sales contract; for further definitions, see UCC 2–104.