The Auditor

question 6

Multiple Choice

The auditor:

• A) prepares the financial statements after the client agrees to all adjustments.
• B) writes the footnotes to the financial statements to ensure their accuracy.
• C) performs work to reach an opinion on the ICFR and financial statements.
• D) None of the above.

---

Definitions:

Rental Property

Real estate property leased or rented out to tenants, generating income for the owner.

Business Inventory

Items that are held by a business for the purpose of sale or production.

Trade or Business

An activity conducted for the purpose of earning income from selling goods or services, characterized by regularity and continuity.

Depreciation

The accounting process of allocating the cost of a tangible asset over its useful life, representing the decrease in value of the asset over time.