In Connection with the Examination of the Consolidated Financial Statements

question 49

Multiple Choice

In connection with the examination of the consolidated financial statements of Mott Industries, Frazier, CPA, plans to refer to another CPA's examination of the financial statements of a subsidiary company. Under these circumstances, Frazier's report must disclose

• A) The name of the other CPA and the type of report issued by the other CPA.
• B) The portion of the financial statements examined by the other CPA.
• C) The nature of Frazier's review of the other CPA's work.
• D) In a footnote the portions of the financial statements that were covered by the examinations of both auditors.

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Definitions:

Generator

A device that converts mechanical energy into electrical energy.

Intrusion On Solitude

An invasion of privacy where an individual's personal space or affairs are interfered with without consent.

Personal Seclusion

The right of an individual to be free from unwarranted public exposure or intrusion.

Public Records

are documents or pieces of information that are not considered confidential and are maintained by public agencies, such as birth records or court records.