Before Reporting on the Financial Statements of a Canadian Entity

question 8

Multiple Choice

Before reporting on the financial statements of a Canadian entity that have been prepared in accordance with the accounting principles of another country,an auditor practising in Canada should ________.

• A)understand the accounting principles that are generally accepted in the other country
• B)be certified by the appropriate auditing or accountancy board of the other country
• C)notify management that the auditor is required to deny an opinion on the financial statements
• D)recast the financial statements according to Canadian GAAP

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Definitions:

Bromide Ion

The bromide ion is a negatively charged ion (Br-) that is formed when a bromine atom gains an electron.

Ionic Compound

A chemical compound composed of ions held together by electrostatic forces termed ionic bonding, generally formed between metal and non-metal ions.

Calcium

A soft gray alkaline earth metal, symbol Ca, essential for living organisms, particularly in cell physiology and bone formation.

Oxygen

Oxygen, a diatomic gas with the molecular formula O2, is critical for respiration in living organisms and supports combustion.