B the financial statements are the responsibility of

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B. The financial statements are the responsibility of the company’s management. C. A review includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. D. A review is greater in scope than a compilation, the objective of which is to present financial statements that are free of material misstatements. 143. If the practitioner determines that the financial statements are materially misstated, he/she shall express a/an A. Unmodified conclusion. B. Qualified conclusion when the practitioner concludes that the effects of the matter(s) giving rise to the modification are material, but not pervasive to the financial statements. C. Adverse conclusion if the practitioner concludes that the possible effects on the financial statements could be both material and pervasive. D. Disclaimer of conclusion when the effects of the matter giving rise to the modification are both material and pervasive to the financial statements. 144. What conclusion is appropriate when the practitioner has obtained limited assurance to be able to conclude that nothing has come to the practitioner’s attention that causes the practitioner to believe that the financial statements are not prepared, in all material respects, in accordance with the applicable financial reporting framework? A. Unmodified conclusion. B. Modified conclusion. C. Disclaimer of conclusion. D. Qualified conclusion. 145. When compiling the financial statements of an entity, an accountant should A. Review agreements with financial institutions for restrictions on cash balances. B. Understand the accounting principles and practices of the entity’s industry. C. Inquire of key personnel concerning related parties and subsequent events. D. Perform ratio analyses of the financial data of comparable prior periods. 146. Which of the following should not be included in an accountant’s report based upon the compilation of an entity’s financial statements? A. A statement that a compilation of the company’s financial statements was made in accordance with the Philippine Standard on Related Services 4410 (Revised), Compilation Engagements. B. A statement that the financial statements and the accuracy and completeness of the information used to compile them are management’s responsibility. C. A statement that a compilation engagement is an assurance engagement. D. A statement that the accountant does not express an audit opinion or a review conclusion. Page 26
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147. An accountant may accept an engagement to apply agreed-upon procedures that are not sufficient to express an opinion on one or more specified accounts or items of a financial statement provided that A. The accountant’s report does not enumerate the procedures performed. B. The financial statements are prepared in accordance with a comprehensive basis of accounting other than generally accepted accounting principles. C. Distribution of the accountant’s report is restricted. D. The accountant is also the entity’s continuing auditor.
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  • Summer '18
  • Jane
  • Financial audit

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