Governmental Auditing Standards Identifies Four Categories of Professional Engagements: Financial

question 31

True/False

Governmental Auditing Standards identifies four categories of professional engagements: financial audits, performance audits, attestation engagements, and non-audit services.

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Definitions:

Consolidated Retained Earnings

The cumulative amount of net income earned by a parent company and its subsidiaries, less any dividends paid, as presented in consolidated financial statements.

Consolidated Net Income

Consolidated net income refers to the total profit of a parent company and its subsidiaries after all intercompany transactions have been eliminated, representing the overall earnings of the corporate group.

Parent

The entity that controls one or more subsidiaries through ownership of the majority of voting rights or through other means.

Subsidiary

A company that is controlled by another company, known as the parent company, through the ownership of more than half of its voting stock or through other means of control.