Dorothy, CPA, is requested to report on summary FS of Lock Books, Inc. Dorothy has not expressed an audit opinion on the FS from which the summary FS were derived. Based solely on this information, should Dorothy accept the engagement? A. Yes, because a report on summary FS is a separate engagement B. No, because PSA 810 (Redrafted) mandates that the auditor should only accept an engagement to report on summary FS only when the auditor has been engaged to conduct an audit of the FS from which the summary FS are derived. C. Yes, because an audit of summary FS is comparable to the audit of FS from which such summary FS are derived. D. None of the above choices can be selected because of lack of information.
Dorothy, CPA, is requested to report on summary FS of Lock Books, Inc. Dorothy has not expressed an audit opinion on the FS from which the summary FS were derived. Based solely on this information, should Dorothy accept the engagement? A. Yes, because a report on summary FS is a separate engagement B. No, because PSA 810 (Redrafted) mandates that the auditor should only accept an engagement to report on summary FS only when the auditor has been engaged to conduct an audit of the FS from which the summary FS are derived. C. Yes, because an audit of summary FS is comparable to the audit of FS from which such summary FS are derived. D. None of the above choices can be selected because of lack of information.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Dorothy, CPA, is requested to report on summary FS of Lock Books, Inc. Dorothy has
not expressed an audit opinion on the FS from which the summary FS were derived.
Based solely on this information, should Dorothy accept the engagement?
A. Yes, because a report on summary FS is a separate engagement
B. No, because PSA 810 (Redrafted) mandates that the auditor should only accept
an engagement to report on summary FS only when the auditor has been
engaged to conduct an audit of the FS from which the summary FS are derived.
C. Yes, because an audit of summary FS is comparable to the audit of FS from
which such summary FS are derived.
D. None of the above choices can be selected because of lack of information.
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