Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Chapter 3, Problem 23DQP
To determine
Explain the reason why the given phrases or clauses are used rather than the alternative provided.
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Directions: Please select the appropriate answer on the statement below;B - If the statement is trueS - When the statement is false or part of the statement is false
The objective of the first reporting standard is to ensure that comparisons of financial statements between periods do not have a material impact on changes in accounting standards or provide adequate disclosures if those changes have a material impact on the comparison of financial statements between periods.
which of the following in not related to standards of reporting
Select one:
a. The report shall identify those circumstances in which such principles have not been consistently observed in the current period in relation to the preceding period
b. The report shall state whether the financial statements are presented in accordance with generally accepted accounting principles
c. The report shall contain either an expression of opinion regarding the financial statements, taken as a whole, or an assertion to the effect that an opinion cannot be expressed
d. A sufficient understanding of internal control is to be obtained to plan the audit and to determine the nature, timing, and extent of tests to be performed.
e. All Of the above are standards of reporting
A careful reading of an unqualified report indicates severalimportant phrases. Explain why each of the following phrases or clauses is used ratherthan the alternative provided:a. “The financial statements referred to above present fairly, in all material respects,the financial position” rather than “The financial statements mentioned above arecorrectly stated.”b. “In conformity with accounting principles generally accepted in the United States ofAmerica” rather than “are properly stated to represent the true economic conditions.”c. “In our opinion, the financial statements present fairly” rather than “The financialstatements present fairly.”d. “Brown & Phillips, CPAs (firm name),” rather than “James E. Brown, CPA (individualpartner’s name).”e. “We conducted our audit in accordance with auditing standards generally acceptedin the United States of America” rather than “Our audit was performed to detectmaterial misstatements in the financial statements.”
Chapter 3 Solutions
Auditing And Assurance Services
Ch. 3 - Prob. 1RQCh. 3 - Prob. 2RQCh. 3 - Prob. 3RQCh. 3 - Prob. 4RQCh. 3 - Prob. 5RQCh. 3 - Prob. 6RQCh. 3 - Prob. 7RQCh. 3 - Prob. 8RQCh. 3 - Prob. 9RQCh. 3 - Prob. 10RQ
Ch. 3 - Prob. 11RQCh. 3 - Prob. 12RQCh. 3 - Prob. 13RQCh. 3 - Prob. 14RQCh. 3 - Distinguish between a report qualified due to a...Ch. 3 - Prob. 16RQCh. 3 - Prob. 17RQCh. 3 - Prob. 18RQCh. 3 - Prob. 19RQCh. 3 - Prob. 20.1MCQCh. 3 - Prob. 20.2MCQCh. 3 - Prob. 20.3MCQCh. 3 - Prob. 21.1MCQCh. 3 - Prob. 21.2MCQCh. 3 - Prob. 21.3MCQCh. 3 - Prob. 22.1MCQCh. 3 - Prob. 22.2MCQCh. 3 - Prob. 22.3MCQCh. 3 - Prob. 23DQPCh. 3 - Prob. 24DQPCh. 3 - Prob. 25DQPCh. 3 - Prob. 26DQPCh. 3 - Prob. 28DQPCh. 3 - Prob. 29DQP
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