Question

In: Accounting

The Report of the Independent Auditor is the opinion of the CPA firm that examined the...

The Report of the Independent Auditor is the opinion of the CPA firm that examined the financial statements of a company and states which of the following?

The financial statements are correct as reported
The financial statements are free from fraud
The financial statements are presented fairly in accordance with GAAP.
The financial statements are fairly presented

Solutions

Expert Solution

The financial statements are presented fairly in accordance with GAAP.

The objective of the audit of financial statements by the independent auditor is the expression of an opinion on the fairness with which they present, in all material respects, financial position, results of operations, and its cash flows in conformity with generally accepted accounting principles.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

The CPA-auditor is required to be INDEPENDENT (even though the accounting firm is paid by the...
The CPA-auditor is required to be INDEPENDENT (even though the accounting firm is paid by the corporation). In contrast, the CPA-tax accountant (or attorney) is an ADVOCATE of the client (not a spokesperson for the IRS). Please discuss the legal, ethical, and pragmatic distinctions between these two conflicting positions. Support your comments using Circular 230 and the AICPA Code of Professional Conduct.
Explain why after the auditor issues the audit report to a CPA firm they encounter evidence...
Explain why after the auditor issues the audit report to a CPA firm they encounter evidence showing that the clients financial statements one materially missed stated or lacked disclosures that are required. What would happen at this point? What if the client refuses to cooperate? What are the responsibilities Of the auditor and give to real world examples where issues like this will occur.
As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations...
As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients. 1.   LR Corporation is a closely held corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 5,000 shares of its $19 par value common stock. The owners’ asking price for the land was $120,000, and the fair value of the land was $120,000. 2.   Vera Corporation is a publicly held corporation...
When an auditor expresses an opinion on the financial report, the auditor’s responsibilities extend to: a....
When an auditor expresses an opinion on the financial report, the auditor’s responsibilities extend to: a. Expressing an opinion on the appropriateness of the entity’s business risk profile. b. Expressing an opinion on whether the entity’s results are fairly presented in the financial report. which answer is correct and which is incorrect and give reasons for both accordingly.?
You work for a well-known regional CPA firm and are the senior auditor in charge of...
You work for a well-known regional CPA firm and are the senior auditor in charge of the fieldwork for a medium sized manufacturing company in the Chicago metro area. The company has been a client for over ten years and there have never been any concerns with the company's systems of controls or their accounting practices. Accordingly, RMM has been considered to be low and audits have been able to place reliance on tests of controls. The interim fieldwork included...
Q#1: As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following...
Q#1: As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients. 1. Ayayai Corporation is a closely held corporation whose stock is not publicly traded. On December 5, the corporation acquired land by issuing 3,500 shares of its $19 par value common stock. The owners’ asking price for the land was $133,500, and the fair value of the land was $119,000. 2. Whispering Winds Corporation is a publicly held corporation...
You are the auditor from a CPA firm who each year audits a company called ABC...
You are the auditor from a CPA firm who each year audits a company called ABC Grocers, Inc. ABC Grocers, understandably, has a large amount of their assets tied up in Inventory. Some of their inventory is small such as candy at the check out counters, but some of it is rather large in size and dollar amount such as large amounts of meat that is waiting to be butchered. The inventory is susceptible to spoilage and theft. During the...
You are the auditor from a CPA firm who each year audits a company called ABC...
You are the auditor from a CPA firm who each year audits a company called ABC Grocers, Inc. ABC Grocers, understandably, has a large amount of their assets tied up in Inventory. Some of their inventory is small such as candy at the check out counters, but some of it is rather large in size and dollar amount such as large amounts of meat that is waiting to be butchered. The inventory is susceptible to spoilage and theft. During the...
Option #1: The Four Steps in the Accounting Process You own an independent CPA firm. One...
Option #1: The Four Steps in the Accounting Process You own an independent CPA firm. One client had the following transactions in January 20x7. Issued share capital for $5,000 cash Purchased $3,000 of equipment on credit Paid $600 cash for this month’s rent Purchased on credit $3,000 of supplies to be used next month Billed $3,500 to customers for repairs made to date Paid cash for one-half of the amount owing in Transaction 4 Collected $400 cash of the amount...
Walmart Independent Auditor’s Opinion
Walmart Independent Auditor’s Opinion
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT