In connection with the examination of the consolidated financial statements Mott Industries, Frazier, CPA, plans to refer to another CPA's examination of financial statements of a subsidiary company. Under these circumstances, Frazier's report must disclose: * In a footnote the portions of tho financial ottomant.
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- Which of the following information would be included in the introductory paragraph of the auditors’ report on internal control over financial reporting if the report is presented separately from the auditors’ report on the entity’s financial statements?a. The fact that the auditors conducted an audit of the entity’s financial statements.b. The definition of a material weakness in internal control over financial reporting.c. Statements identifying the responsibility of the auditors and management for internal control over financial reporting.d. A reference to the auditors’ report and opinion on the entity’s financial statements.s1: The heading "Report on Other Legal and Regulatory Requirements' is only appropriate for the audit of listed entities s2: |n all circumstances, the name of the engagement partner should always be included in the the auditor's report for audits of complete sets of general purpose financial statements of listed entities. s3: The auditor's responsibility for events and transactions after the date of the auditor's report is addressed in PSA 570. O S1 and S2 are true O S2 and S3 are true O All statements are true O All statements are falseThe auditors include an emphasis-of-matter paragraph in an otherwise unmodified report on the entity's financial statements to emphasize that the entity being reported on had significant transactions with related parties. The inclusifis considered a qualification of the opinion.on of this separate paragraph
- In which of the following circumstances does not require auditors to modify the content of the standard report on the entity's financial statements? The auditors reference component auditors O who examined a subsidiary of group financial statements.Which of the following best describes the general contents of the introductory paragraph of the auditors’ report?a. A description of an audit examination, including the fact that the audit was conducted under standards established by the PCAOB.b. The auditors’ conclusion with respect to the fairness of the entity’s financial statements.c. Statements identifying the responsibility of auditors and management in the financial reporting process.d. The auditors’ conclusion with respect to the effectiveness of the entity’s internal control over financial reporting.How is the auditors’ responsibility for expressing the opinion on financial statements disclosed in the standard (unmodified) report for a nonpublic company?a. Stated explicitly in the Auditor’s Responsibility section.b. Unstated but understood in the Auditor’s Responsibility section.c. Stated explicitly in the opinion paragraph.d. Stated explicitly in the introductory paragraph.
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