The Fourth PCAOB Standard of Reporting Requires an Auditor to Render

question 61

Multiple Choice

The fourth PCAOB standard of reporting requires an auditor to render a report whenever an auditor's name is associated with financial statements.The overall purpose of the fourth standard of reporting is to require that reports

• A) State that the examination of financial statements has been conducted in accordance with generally accepted auditing standards.
• B) Indicate the character of the auditor's examination and the degree of responsibility assumed by the auditor.
• C) Imply that the auditor is independent in fact as well as in appearance with respect to the financial statements under examination.
• D) Express whether the accounting principles used in preparing the financial statements have been applied consistently in the period under examination.

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Definitions:

United Nations

An international organization founded in 1945 composed of member states, aimed at promoting peace, security, and cooperation among countries.

Britain

An island nation in the northwest of Europe, historically referring to the land of the Britons, and now more commonly associated with the United Kingdom.

Independence Struggle

An Independence Struggle is a conflict and series of actions taken by a country or region to gain sovereignty and self-government, often from colonial or oppressive rulers.