XYZ Ltdhas Prepared Financial Statements That Contain a Material Departure from from GAAP.The

question 37

Multiple Choice

XYZ Ltd.has prepared financial statements that contain a material departure from GAAP.The review report should ________.

• A)ensure that the nature of the departure is described in the notes
• B)contain a qualification and describe the nature of the departure from GAAP
• C)be a standard review report,since a review is not an audit
• D)indicate the dollar effect of restatement for each account affected

---

Definitions:

Income

Money that an individual or business receives, typically in exchange for providing a good or service, or through investing.

Slope

In mathematics, the rate at which a line inclines or declines, indicating the steepness of the line.

Regression Line

A straight line that describes how a response variable Y changes as an explanatory variable X changes, used in linear regression.

Least Squares Regression Line

A straight line that minimizes the sum of the squared differences between the observed values and the values predicted by the line.