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

question 12

Multiple Choice

In the course of the examination of financial statements for the purpose of expressing an opinion,the auditor normally prepares a schedule of unadjusted differences for which the auditor did not propose adjustments when they were discovered.What is the primary purpose of this schedule?

• A) To point out to the responsible entity 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 errors or disputed items that were considered immaterial when discovered.
• D) To summarize the errors made by the company so that corrections can be made after the audited financial statements are released.

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Definitions:

Socially Expected

Behaviors or norms that are anticipated and considered normal within a society or group.

Family Norms

Social rules or standards shared within a family group, guiding behaviors and expectations among its members.

Subsystems

Components or smaller systems that operate within a larger system, each with its role and function.

Secondary Groups

These are groups characterized by more impersonal, less intimate interactions, often formed around tasks and specific objectives.