In the Course of the Audit of Financial Statements for the Purpose

question 60

Multiple Choice

In the course of the audit of financial statements for the purpose of expressing an opinion thereon,the auditors will normally prepare a schedule of unadjusted differences for which the auditors did not propose adjustment when they were identified.What is the primary purpose served by this schedule?

• A)To point out to the responsible client officials the errors made by various company personnel.
• B)To summarize the adjustments that must be made before the company can prepare and submit its federal tax return.
• C)To identify the potential financial statement effects of misstatement or disputed items that were considered immaterial when discovered.
• D)To summarize the misstatements made by the company so that corrections can be made after the audited financial statements are released.

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Definitions:

Aggression

A range of behaviors or actions intended to harm, intimidate, or assert dominance over others, often resulting from frustration, threats, or social learning.

Culture

The shared beliefs, practices, norms, and values of a group of people that inform their way of life and social interactions.

Stimulus Motives

Drives that are unlearned and lead to an increase in stimulation, such as curiosity or exploration.

Learned

Acquired or developed through experience or education.