Ch3 Solutions - Chapter 3 - Audit Reports Multiple Choice...

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Chapter 3 - Audit Reports Multiple Choice Questions From CPA Examinations 3-23 a. (2) b. (3) c. (3) d. (3) 3-24 a. (2) b. (3) c. (1) 3-26 a. Items that need not be included in the auditor's report are: 1. That Excelsior is presenting comparative financial statements. (Both years' statements will be referred to in the audit report.) 2. Specific description of the change in method of accounting for long-term construction contracts need not be included in the report since it is discussed in the footnotes. The auditor's report must state that there is a change in accounting principles and refer to the footnote. 3. The fact that normal receivable confirmation procedures were not used should not be disclosed since the auditor was able to satisfy him or herself through alternate audit procedures. 4. The lawsuit need not be discussed in the report since it has been included in a footnote. [ Note : prior to the issuance of SAS 79, the auditor would have been required to add an explanatory paragraph to the audit report that referred to the footnote.] b. The following deficiencies are in Roscoe's report: 1. The audit report is neither addressed nor dated and it does not contain a title. The audit report date should be the last day of field work.
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This note was uploaded on 06/24/2011 for the course ACCOUNTING 424 taught by Professor Smith during the Spring '11 term at UNC Charlotte.

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Ch3 Solutions - Chapter 3 - Audit Reports Multiple Choice...

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