When Audited Financial Statements Are Presented in an Entity's Document

question 7

Multiple Choice

When audited financial statements are presented in an entity's document containing other information,the auditor should

• A) perform inquiry and analytical procedures to ascertain whether the other information is reasonable.
• B) add an explanatory paragraph to the auditor's report without changing the opinion on the financial statements.
• C) perform the appropriate substantive auditing procedures to corroborate the other information.
• D) read the other information to determine that it is consistent with the audited financial statements.

---

Definitions:

Merchant Capitalism

An early phase in the development of capitalism where trade and the merchant class played a primary role in economic life.

Condottieri

Condottieri were leaders of mercenary soldiers in Italy during the Middle Ages and Renaissance, hired by city-states and the papacy for military purposes.

Holy Roman Empire

A multi-ethnic complex of territories in central Europe that developed during the Early Middle Ages and lasted until its dissolution in 1806, often led by an emperor elected by the princes.

Patronage

The support, encouragement, privilege, or financial aid that an organization or individual bestows to another.