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Which of the following best describes the main reason that independent auditors report on management’s financial statements? The management team that prepares the statements and the persons who use the statements may have conflicting interests.An auditor’s report is a written letter from the auditor containing their opinion on whether a company’s financial statements comply with generally accepted accounting principles (GAAP) and are free from material misstatement.Independent auditors have a mandate to protect shareholders and potential investors from a public company’s possible fraud and accounting improprieties. Company managers can use the results of an independent audit to improve company processes.
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Why do independent auditors report on financial statements?
An auditor’s report is a written letter from the auditor containing their opinion on whether a company’s financial statements comply with generally accepted accounting principles (GAAP) and are free from material misstatement.
What is the main purpose of independent audit of financial statements?
Independent auditors have a mandate to protect shareholders and potential investors from a public company’s possible fraud and accounting improprieties. Company managers can use the results of an independent audit to improve company processes.
Auditor report in the annual report
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Which of the following is best describes the reason why external auditor provide a report on the financial statements?
It is necessary because the management and ownership of a company are distinguished and they have different interests. Was this answer helpful?
Which of the following best describe the independence of auditors?
Hence, an independent auditor is required to give an unbiased opinion on the information presented by the company. Hence, the correct answer is option D.
What is the significance of independent auditor’s report in an audit engagement?
The auditor’s report states that the auditor’s responsibility is to express an opinion on the financial statements based on the audit in order to contrast it to management’s responsibility for the preparation and fair presentation of the financial statements.
What is the importance of auditor independence?
Auditor independence is part of the foundation of the auditing profession. An independent, reliable, and ethically sound audit gives a company credibility and allows the public to trust in the accuracy of the results and the integrity of the accounting profession.
What is an independent review of financial statements?
An Independent Review is a limited assurance engagement where the practitioner performs primarily inquiry and analytical procedures to obtain sufficient appropriate evidence as the basis for a conclusion on the financial statements as a whole, expressed in accordance with the requirements of ISRE 2400 (Revised).
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Which of the following best describes the main reason that independent auditors report on a company’s financial statements? A. Management fraud may exist …
Which of the following best describes the main reason that …
Which of the following best describes the main reason that independent auditors report on acompany’s financial statements?A.Management fraud may exist …
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Which of the following best describes the main reason that independent auditors report on management’s financial statements?
Which of the following best describes the main reason …
Which of the following best describes the main reason independent auditors report on management’s financial statements? a. The management that…
What is the primary role and responsibility of independent external auditors?
External auditors are responsible for auditing the company’s financial statements and providing reasonable assurance that they are presented fairly and in conformity with GAAP and that they reflect true representation of the company’s financial position and results of operations.
Which of the following best describes why an independent auditor is asked to express an opinion?
Which of the following best describes why an independent auditor is asked to express an opinion on the fair presentation of financial statements? An engagement to report on compliance with statutory requirements.
Which of the following statements best describes the auditor’s responsibility regarding the detection of material errors and irregularities?
d. The auditor should assess the risk that errors and fraud may cause the financial statements to contain material misstatements, and design the audit to provide reasonable assurance of detecting material misstatements due to errors and fraud.
Audit Opinions Explained – Auditors Report in Financial Statements
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Which of the following best describes the purpose of an audit?
Which of the following best describes the purpose of an audit? To lend credibility to an entity’s financial statements.
What is the independent auditor’s report?
An independent Auditor’s Report is an official opinion issued by an external or internal auditor as to the quality and accuracy of the financial statements prepared by a company. The report is a primary source of communication between the auditor and users of financial statements.
Which of the following best describes the objective of audit of the financial statements?
27. Which of the following best describes the objective of an audit of financial statements? a. To express an opinion whether the financial statements are prepared in accordance with prescribed criteria.
What is the purpose of the audit report quizlet?
Terms in this set (32)
The purpose of an audit is to provide financial statement users with an opinion by the auditor on whether the financial statements are presented fairly in all material respects in accordance with the applicable financial reporting framework.
Which of the following best describes the primary role of auditors in financial reporting?
Which of the following best describes the primary role of auditors in financial reporting? Consultants that are hired by company management to advise on key matters related to competition, product pricing, employee retention, and financial reporting strategies.
Why is an auditor’s independence so essential quizlet?
Why is an auditor’s independence so essential? Independence in auditing means taking an unbiased viewpoint. Users of financial statements would be unlikely to rely on the statements if they believed auditors were biased in issuing audit opinions.
Why is independence so important for an assurance engagement?
The need for independence arises because, in many cases, users of financial statements and other third parties do not have sufficient information or knowledge to understand what is contained in a company’s annual accounts. Thus, they rely on the auditor’s independent assessment.
How independent is the independent auditor?
Auditor: An auditor is an independent person appointed to examine the organization, its records and the financial statements prepared from them and thus form an opinion on the accuracy and correctness of the financial statements.
What is the purpose of an independent review?
Independent review is mainly used in guideline development to assess: the rationale applied in searching for and examining the body of evidence. the quality of the evidence on which the recommendations are based. the rigour of the development process.
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When should an independent review required?
Independent reviews are not required for owner managed profit companies but can be performed voluntarily if the public interest score is less than 350 and the financial statements are independently compiled, or if the public interest score is less than 100.
Who does an independent review?
An independent reviewer is an individual who does not have direct professional responsibility for the design stage under review, assuring an independent and objective review.
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