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

question 43

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:

Corporate Story

A narrative created by a company that encapsulates its identity, values, and evolution over time, often used for branding and marketing purposes.

Non-governmental Organizations

Independent organizations not affiliated with government bodies, typically working towards social, environmental, or humanitarian goals.

Global Middle Class

A socio-economic term referring to individuals who fall in between the working class and the upper class within a global context, often characterized by stable income, education, and the ability to afford non-essential goods and services.

Halo Effect

A cognitive bias where the perception of one positive characteristic of a person or entity influences the overall impression, often leading to unjustified favorable evaluations.