FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
19th Edition
ISBN: 9781119493624
Author: Kimmel
Publisher: WILEY
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Chapter 1, Problem 1.3bDIE
To determine
Introduction:
Annual Report is a comprehensive financial report that shows all the business activities that takes place throughout the previous financial year. Its purpose is to provide the complete financial information of a company’s financial activities to its users in order to help them analyze, and take well informed decisions.
To identify: The components of annual reports.
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Management assertions are A) stated in the footnotes to the financial statements. B) implied or expressed representations about the accounts in the financial statements. C) explicitly expressed representations about the financial statements. D) provided to the auditor in the engagement letter but are not disclosed on the financial statements.
tion
As per ISA 700, Which of the following is NOT a specific evaluation while forming an opinion on financial statements?
Evaluate whether the financial statements are prepared in all material respects, in accordance with the applicable financial reporting framework.
The Accounting policies selected and applied are consistent with financial reporting framework.
IThe management's accounting estimates are reasonable and terminology used in the financial statements are appropriate.
The financial statements are providing the sufficient disclosures to enable users to understand.
While evaluating the management's assessment of the entity as a going concern, the auditor shall consider same time period as
covered by management in its assessment, such period shall:
At least twelve months from the date of financial statements
tion
Auditing and Contpdf
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The performance of an attestation engagement on prospective financial information does not require which of the following?a. If the basis of the prospective financial information is different from the financial statements, a reconciliation of the two must be provided.b. Management must disclose all significant assumptions used in generating the prospective financial information.c. Management must disclose significant accounting policies and procedures used in generating the prospective financial information.d. Management must disclose the probability of obtaining the results included in the prospective financial information.
Chapter 1 Solutions
FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
Ch. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - Accounting is ingrained in our society and is...Ch. 1 - Prob. 5QCh. 1 - Prob. 6QCh. 1 - What are the three main types of business...Ch. 1 - Prob. 8QCh. 1 - Prob. 9QCh. 1 - Prob. 10Q
Ch. 1 - Prob. 11QCh. 1 - What are the three main categories of the...Ch. 1 - Prob. 13QCh. 1 - Prob. 14QCh. 1 - Prob. 15QCh. 1 - Which of these items are liabilities of White...Ch. 1 - How are each of the following financial statements...Ch. 1 - What is the purpose of the management discussion...Ch. 1 - Prob. 19QCh. 1 - Prob. 20QCh. 1 - Prob. 21QCh. 1 - Prob. 1.1BECh. 1 - Match each of the following types of evaluation...Ch. 1 - Indicate in which part of the statement of cash...Ch. 1 - Prob. 1.4BECh. 1 - Prob. 1.6BECh. 1 - Indicate which statement you would examine to find...Ch. 1 - Prob. 1.8BECh. 1 - Prob. 1.9BECh. 1 - Prob. 1.10BECh. 1 - Prob. 1.11BECh. 1 - Prob. 1.1DIECh. 1 - Prob. 1.2DIECh. 1 - Prob. 1.3bDIECh. 1 - Here is a list of words or phi uses discussed in...Ch. 1 - Prob. 1.4ECh. 1 - Prob. 1.9ECh. 1 - Prob. 1.12ECh. 1 - Prob. 1.19ECh. 1 - Prob. 1.21ECh. 1 - Prob. 1.1APCh. 1 - Financial decisions often place heavier emphasis...Ch. 1 - INTERPRETING FINANCIAL STATEMENTS Xerox was not...Ch. 1 - Prob. 1.5EYCTCh. 1 - Prob. 1.9EYCTCh. 1 - Prob. 1.10EYCTCh. 1 - Prob. 1.1IPCh. 1 - Prob. 1.2IPCh. 1 - Prob. 1.3IP
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- Professional guidance indicates that the auditor should consider revenue recognition to be high risk in planning an audit of a company’s financial statements. a. Identify the activities that affect the revenue cycle. b. Identify the financial statement accounts typically associated with the revenue cycle.arrow_forwardAn auditor's objectives in evaluating accounting estimates include all of the following except to Develop the estimates and make the journal entries to record them. Assure that estimates are presented in the financial statements in accordance with GAAP. O Provide reasonable assurance that management has developed all material estimates. Assure that estimates are reasonable.arrow_forwardWhich of the following is not a typical note included in the notes to financial statements? Group of answer choices A note describing the auditors’ opinion of management’s future financial plans A note describing the accounting rules applied in the financial statements A note describing possible financial obligations not included in the financial statements A note providing more detail about specific items shown in the financial statementsarrow_forward
- what are the key factors that should be considered in determining whether a financial statement is material? should auditors apply the same material guidelines or benchmarks as financial accountants ?arrow_forwardAn accountant may allow general distribution of reports based ona. An agreed-upon-procedures engagement.b. An examination of prospective financial information.c. An examination of forecasted financial information.d. None of the above.arrow_forwardWhen accountants agree to perform a compilation or review of unaudited financial statements, the best way to avoid clients’ misunderstanding the nature of the work is to describeit completely ina. An engagement letter.b. The auditors’ opinion.c. A report to the clients’ board of directors at the close of the engagement.d. A management letter to the board of directors’ audit committee.arrow_forward
- The auditor considers materiality from the point of ___________ a. Overall financial information and individual account balance b. Overall financial information c. Past experiences d. individual account balancearrow_forwardCommunicating Key Audit Matters in the audit report is : A. Additional communication to provide transparency in the auditor’s professional judgment, B. An assistance for financial statement users to better understand the entity and areas of significant management juudgments C. A substitute for disclosures in the financial statements that the applicable financial reporting framework requires management to make D. A separate additional opinion on individual matters Seçimimi temizlearrow_forwardWhich of the following is the purpose of an Auditor’s Report? 1. To inform readers that financial statements are free of important and significant errors. 2. To show a fair picture of operating results, financial position and cash flows. 3. To give assurances to the financial health and strength of a company. A. All of the above B.arrow_forward
- During a review of a nonissuer’s financial statements, accountants are required to make certaininquiries of management. Which of the following inquiries is not required by the SSARS?a. The basis for the preparation of financial statements.b. Internal control deficiencies.c. Significant transactions occurring near the end of the reporting period.d. Material subsequent eventsarrow_forwardThe purpose of an audit is to A. provide financial statement users with an opinion by an independent auditor on whether the financial statements are presented fairly in accordance with an applicable financial reporting framework B. provide internal auditors with an opinion by the external auditor on whether the financial statements are presented fairly in accordance with an applicable financial reporting framework C. provide absolute assurance that the financial statements conform to Generally Accepted Accounting Principles (GAAP) D. help management ensure yearly bonuses will be receivedarrow_forwardThe existence of audit risk is recognized by the statement in the auditor's standard report that the auditor _______. A. Assesses the accounting principles used and also evaluates the overall financial statement presentation. B. Is responsible for expressing an opinion on the financial statements, which are the responsibility of management. C. Obtains reasonable assurance about whether the financial statements are free of material misstatement. D. Realizes that some matters, either individually or in the aggregate, are important while other matters are not important.arrow_forward
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