C following the auditors responsibility section d

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C. Following the Auditor’s Responsibility section. D. Within the notes to the financial statements. Page 23 131. There are two broad financial reporting frameworks for comparatives: the corresponding figures and the comparative financial statements. Which of the following statements is correct concerning these reporting frameworks? A. Under the corresponding figures framework, the corresponding figures for the prior period(s) are integral part of the current period financial statements. B. Under the corresponding figures framework, the corresponding figures for the prior period(s) are considered separate financial statements. C. Under the comparative financial statements framework, the comparative financial statements for the prior period(s) are intended to be read in
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conjunction with the amounts and other disclosures relating to the current period. D. Under the comparative financial statements framework, the amounts and other disclosures for the prior period(s) form part of the current period financial statements. 132. The following statements relate to the auditor’s reporting responsibilities regarding comparatives. Which is incorrect? I. For corresponding figures, the auditor’s report only refers to the financial statements of the current period. II. For comparative financial statements, the auditor’s report refers to each period that financial statements are presented. A. I only C. Both I and II B. II only D. Neither I nor II 133. According to PSA 710, the incoming auditor may refer to the predecessor auditor’s report on the corresponding figures in the incoming auditor’s report for the current period. The incoming auditor’s report should indicate I. That the financial statements of the prior period were audited by another auditor. II. The type of report issued by the predecessor auditor. III. The date of the predecessor auditor’s report. A. I and II only. C. I and III only. B. II and III only. D. I, II, and III. 134. J, CPA, audited JST Company’s prior-year financial statements. These statements are presented with those of the current year for comparative purposes without J’s auditor’s report, which expressed a qualified opinion. In drafting the current year’s auditor’s report, S, CPA, the incoming auditor, should I. Not name J as the predecessor auditor. II. Indicate the type of report issued by J. III. Indicate the substantive reasons for J’s qualification. IV. Indicate the date of J’s auditor’s report. A. I, II, and IV only. C. I, II, and III only. B. II, III, and IV only. D. I, II, III, and IV. 135. Financial statements prepared in accordance with a financial reporting framework designed to meet the financial information needs of specific users are referred to as A. Special purpose financial statements B. Special purpose framework C. General purpose financial statements D. Specific purpose financial statements Page 24 136. An auditor’s report on financial statements prepared in accordance with the financial reporting provisions of a contract (that is, a special purpose framework) to comply with the provisions of that contract should include all of the following, except A. An opinion as to whether the financial statements are presented fairly, in all material respects, in accordance with the financial reporting provisions of the contract.
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  • Summer '18
  • Jane
  • Financial audit

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