Which of the Following Is Not Included in the Auditors

question 4

Multiple Choice

Which of the following is not included in the auditors' standard unmodified audit report?

• A) The procedures selected by the auditor depend on the auditor's judgment.
• B) An audit includes evaluating the appropriateness of accounting policies used.
• C) An audit includes evaluating the overall presentation of the financial statements.
• D) Accounting principles have been consistently applied.

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Definitions:

Statement of Retained Earnings

A financial statement that summarizes the changes in retained earnings for a specific period, including net income, dividends paid, and adjustments.

Income Statement

A financial report summarizing revenues, expenses, and profits over a specified period, showing the financial performance of a company.

Statement of Cash Flows

A financial report that tracks the cash inflows and outflows from operating, investing, and financing activities over a period.

Statement of Cash Flows

A financial overview explaining how modifications in balance sheet accounts and income levels impact cash and cash equivalents, analyzed through operating, investing, and financing operations.