Assignment 3-2 Special Reports

Assignment 3-2 Special Reports - ACCT470-V2WW January 28,...

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ACCT470-V2WW January 28, 2012 Special Reports Assignment 3-2 Chapter 18: 18-8. List three examples of special reports. 1. Financial statements prepared on a comprehensive basis of accounting other than GAAP. (e.g., the cash basis of accounting) 2. Specified elements, accounts, or items of a financial statement. 3. Compliance with aspects of contractual agreements or regulatory requirements related to audited financial statements. 18-9. List four bases for special purpose financial statements. Why is it important that the audit report clearly identify the basis of accounting used in the preparation of the financial statements? 1. Regulatory basis – The basis used to comply with the requirements or financial reporting provisions of a governmental regulatory agency. 2. Tax basis – The basis the entity uses to file its income tax return. 3. Cash (or modified cash) basis – The entity reports on revenues when received and expenses when paid. This may be modified to record depreciation or to accrue income
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Assignment 3-2 Special Reports - ACCT470-V2WW January 28,...

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