An Auditor's Report on Financial Statements Prepared in Accordance with a Basis

question 48

Multiple Choice

An auditor's report on financial statements prepared in accordance with a basis of accounting other than generally accepted accounting principles should include all of the following except:

• A) An opinion as to whether the basis of accounting used is appropriate under the circumstances.
• B) An opinion as to whether the financial statements are presented fairly in conformity with the other basis of accounting.
• C) Reference to the note to the financial statements that describes the basis of presentation.
• D) A statement that the basis of presentation is a basis of accounting other than generally accepted accounting principles.

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Definitions:

Status Quo Bias

A cognitive bias where individuals prefer retaining current conditions to change or new alternatives, due to the perceived comfort or safety in familiarity.

Rationalizing Decision

The process of providing logical or rational reasons to justify a decision, often after the decision has been made.

Analyzing Options

The process of evaluating different choices or paths before making a decision.

Select Few

A small and exclusive group of people chosen or regarded as being superior or having special privileges, skills, or qualities.