4. When performing a review of interim financial information of a publicly trade

Question

4. When performing a review of interim financial information of a publicly traded company, the independent accountant is trying to determine if: (a) (b) (c) (d) The financial statements are prepared in accordance with GAAP and are fairly stated. Material modifications need to be made to the financial statements in order to bring them in conformity with GAAP. Condensed financial statements should be included in a client registration statement. There is a reasonable basis for expressing an opinion on the financia statements taken as a whole. cash 5. Ifan auditor prepared a report on financial statements prepared using the and disbursements basis of accounting, the report issued would receipts include all of the following except: (a) A statement that the audit was performed in accordance with GA (b) An opinion as to whether the financial statements are fairly stated in AS. accordance with the cash receipts and disbursements basis of accounting. A reference to the note in the financial statements that describes the cash receipts and disbursements basis of accounting. A statement to the effect that the cash receipts and disbursements basis of accounting is not a comprehensive basis of accounting. (c) (d) 6. When an independent CPA is engaged to assist in preparing the financial statements of a publicly held company, but has not audited or reviewed these statements, the CPA should issue a disclaimer of opinion. In these situations, the CPA has no responsibility other than: (a) Reading the financial statements for obvious material misstatements (b) Determining whether the financial statements are prepared in conformity with GAAP Determining whether management has elected to substantially omit all required disclosures. Documenting that internal control is not being relied upon. (c) (d)

Explanation / Answer

4. Option A. In accordance with SAS Statement on Auditing Standards 100, 116 & 121 issued by Auditing Standards Board of AICPA, the independent accountant is only required to review the applicability of GAAP to financial statements.

5. Option D. In accordance with SAS Statement on Auditing Standards 122, 125 & 127 and AU-C section 800 issued by Auditing Standards Board of AICPA, the framework for auditor has been prescribed in case of cash basis of accounting.

6. Option A. In accordance with SAS Statement on Auditing Standards 26, 35 and AU section 504 issued by Auditing Standards Board of AICPA.

11. Option C- Introductory Paragraph. In accordance with SAS Statement on Auditing Standards 58, 35 and AU section 508 issued by Auditing Standards Board of AICPA.

12. Option C. Chief Executive Officer of the company

13. Option B. In accordance with SAS Statement on Auditing Standards 88 issued by Auditing Standards Board of AICPA.

14. Option A. In accordance with SSARS Statement for Accounting & Review Services No. 11 issued by AICPA.

14. Option B. In accordance with SAS Statement on Auditing Standards 1 issued by Auditing Standards Board of AICPA.

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.