A careful reading of an unqualified report indicates severalimportant phrases. Explain why each of the following phrases or clauses is used ratherthan the alternative provided:a. “The financial statements referred to above present fairly, in all material respects,the financial position” rather than “The financial statements mentioned above arecorrectly stated.”b. “In conformity with accounting principles generally accepted in the United States ofAmerica” rather than “are properly stated to represent the true economic conditions.”c. “In our opinion, the financial statements present fairly” rather than “The financialstatements present fairly.”d. “Brown & Phillips, CPAs (firm name),” rather than “James E. Brown, CPA (individualpartner’s name).”e. “We conducted our audit in accordance with auditing standards generally acceptedin the United States of America” rather than “Our audit was performed to detectmaterial misstatements in the financial statements.”
A careful reading of an unqualified report indicates several
important phrases. Explain why each of the following phrases or clauses is used rather
than the alternative provided:
a. “The financial statements referred to above present fairly, in all material respects,
the financial position” rather than “The financial statements mentioned above are
correctly stated.”
b. “In conformity with accounting principles generally accepted in the United States of
America” rather than “are properly stated to represent the true economic conditions.”
c. “In our opinion, the financial statements present fairly” rather than “The financial
statements present fairly.”
d. “Brown & Phillips, CPAs (firm name),” rather than “James E. Brown, CPA (individual
partner’s name).”
e. “We conducted our audit in accordance with auditing standards generally accepted
in the United States of America” rather than “Our audit was performed to detect
material misstatements in the financial statements.”
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
