Principles Of Auditing & Other Assurance Services
21st Edition
ISBN: 9781259916984
Author: WHITTINGTON, Ray, Pany, Kurt
Publisher: Mcgraw-hill Education,
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Question
Chapter 17, Problem 1RQ
To determine
Provide the comment on the given statement.
Expert Solution & Answer
Explanation of Solution
Audit report:
The audit report is a written opinion of the auditor on the fair representation of the financial statements of the company. The audit report is prepared in a specific manner as mandated by the applicable financial reporting framework. It examines whether the company has followed the GAAP guidelines.
Comparative financial statements:
Financial statements usually represented through the comparative form for the current year as well as one or more previous years. Such financial statements are prepared based on the general purpose financial reporting framework.
Comment on the given statement:
The given statement is not correct. The comparative financial statements imply the comparison between the current year and the previous year’s financial statements of the same company. Thus, it cannot be said that an audit report on comparative financial statements ordinarily compares current year financial statements of two or more companies with one another.
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Students have asked these similar questions
Which of the following is not included in the standard (unmodified) report on the financialstatements?a. An identification of the financial statements that were audited.b. A general description of an audit.c. An opinion that the financial statements present financial position in accordance withGAAP.d. An emphasis-of-matter paragraph commenting on the effect of economic conditions onthe entity
Explain the relationship between the audit of owners’ equityand the calculations of earnings per share. What are the main auditing considerations inverifying the earnings per share figure?
The subject matter of information in auditing includes what?
A. The financial statements of the enterprise (e.g. Balance Sheet, Income Statement, Statement of Cash Flow, Statement of Changes in Shareholder’s Equity and the notes to financial statements)
B. Financial reporting framework
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Chapter 17 Solutions
Principles Of Auditing & Other Assurance Services
Ch. 17 - Prob. 1RQCh. 17 - What is the function of notes to financial...Ch. 17 - Prob. 3RQCh. 17 - Prob. 4RQCh. 17 - Prob. 5RQCh. 17 - Prob. 6RQCh. 17 - Prob. 7RQCh. 17 - Prob. 8RQCh. 17 - Prob. 9RQCh. 17 - Prob. 10RQ
Ch. 17 - Prob. 11RQCh. 17 - Prob. 12RQCh. 17 - Prob. 13RQCh. 17 - Prob. 14RQCh. 17 - Prob. 15RQCh. 17 - Prob. 16RQCh. 17 - Prob. 17RQCh. 17 - Prob. 18RQCh. 17 - Prob. 19RQCh. 17 - Prob. 20RQCh. 17 - Prob. 21QRACh. 17 - Prob. 22QRACh. 17 - Prob. 23QRACh. 17 - Prob. 24QRACh. 17 - Prob. 25AOQCh. 17 - Prob. 25BOQCh. 17 - Prob. 25COQCh. 17 - Prob. 25DOQCh. 17 - Prob. 25EOQCh. 17 - Prob. 25FOQCh. 17 - Prob. 25GOQCh. 17 - Prob. 25HOQCh. 17 - Prob. 25IOQCh. 17 - Prob. 25JOQCh. 17 - Prob. 25KOQCh. 17 - Prob. 25LOQCh. 17 - Prob. 26OQCh. 17 - Prob. 27OQCh. 17 - Prob. 28OQCh. 17 - Prob. 29OQCh. 17 - Prob. 30OQCh. 17 - Prob. 31OQCh. 17 - Prob. 32OQCh. 17 - Prob. 33PCh. 17 - Prob. 34PCh. 17 - Sturdy Corporation (a nonpublic company) owns and...Ch. 17 - Prob. 36PCh. 17 - Prob. 37PCh. 17 - Prob. 38ITCCh. 17 - Prob. 39ITCCh. 17 - Prob. 40RDC
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