An Auditor May Report on Summary Financial Statements That Are

question 73

Multiple Choice

An auditor may report on summary financial statements that are derived from a complete set of audited financial statements only if the auditor

• A)Expresses an unmodified opinion on the audited financial statements from which the summary financial statements are derived.
• B)Indicates whether the information is fairly stated in all material respects in relation to the complete financial statements.
• C)Determines that the summary financial statements include all the disclosures necessary for the complete set of financial statements.
• D)Presents the summary financial statements in comparative form with the prior years' summary financial statements.

Employ the concept of contribution margin ratio in evaluating business performance.

Calculate the required sales volume to achieve a specified operating income.

Understand the concept of fixed and variable costs and their impact on break-even analysis.

Calculate break-even points in units and sales dollars under different cost and price scenarios.

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Definitions:

Public Employees

Individuals employed by government entities at the federal, state, or local level, including civil servants and public sector workers.

Public Policy Exception

A legal principle allowing courts to refuse to enforce certain contracts or clauses if they are in violation of the established public policy of the state or country.

Employment At Will

A legal doctrine that means an employer can terminate an employee at any time for any reason, except an illegal one, or no reason without incurring legal liability.

Occupational Safety

Policies, practices, and procedures implemented to protect individuals from risks and hazards in the workplace.