The Auditor's Report ________

question 113

Multiple Choice

The auditor's report ________.

• A) attests that the financial statements are error-free
• B) is prepared by the internal auditors
• C) states whether the financial statements are presented in accordance with GAAP
• D) does not include an assessment of the effectiveness of the company's internal controls

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Definitions:

Journal Entry

A record of a financial transaction in the accounting books of a business or organization.

DR (Debit)

DR, or Debit, represents the left side of a general ledger account and is used to record increases in assets or expenses and decreases in liabilities, equity, and income.

CR (Credit)

An accounting entry that decreases assets or increases liabilities and equity on a company's balance sheet, reflective of the double-entry bookkeeping system.

Tax Expense

The total amount of taxes a company incurs, reflecting both current taxes due and future tax liabilities.