There Are Four Conditions That Must Be Met Before an Auditor

question 54

Essay

There are four conditions that must be met before an auditor can issue a standard unqualified report for the audit of a private company. Please discuss each of these four conditions.

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Definitions:

Monthly Depositor

A business classified as a monthly depositor will make its payroll tax deposits only once each month for the amount of Form 941 taxes due from the prior month.

Look-Back Period

A specified time frame in the past during which relevant financial transactions or performance is reviewed or analyzed.

Payroll Tax Expense

Taxes that are incurred by an employer based on the salaries and wages of employees, including taxes like Social Security and Medicare in the United States.

FICA

The Federal Insurance Contributions Act tax is a United States federal payroll tax imposed on both employees and employers to fund Social Security and Medicare.