To Whom Do Auditor's Report

question 13

Multiple Choice

To whom do auditor's report?

• A)shareholders.
• B)directors.
• C)Both A and B.
• D)Australian Tax Office.

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Definitions:

Reported Income

The income that a company officially reports on its income statement, which has been calculated according to the applicable accounting standards.

FIFO Method

The First-In, First-Out accounting method, where the first items added to inventory are the first ones to be sold or used.

Inventory Valuation

The method used to price inventory items on the balance sheet, impacting cost of goods sold and financial results.

Absorption Costing

Absorption costing is an accounting method that includes all the direct costs and overheads associated with producing a particular product in its cost base.