Langford & Company, CPAs were approached to report on summary financial statements. The summary financialstatements were prepared on a tax basis whereas the complete financial statements were prepared using GenerallyAccepted Accounting PrinciplesO Langford & Company may perform the engagement because the tax basis is an acceptable other comprehensive basis ofaccounting.Langford & Company may perform the engagement if Langford & Company also performed the audit of the complete financialstatements.O Langford & Company may perform the engagement if Langford & Company obtained the proper management representationletter which includes the requirement to notify the auditor of any subsequent events that occurred.O Langford & Company may not perform the engagement.

The primary distinction between the tax basis and GAAP-basis financial statements is that tax basis…

Langford & Company, CPAs were approached to report on summary financial statements. The summary financial statements were prepared on a tax basis whereas the complete financial statements were prepared using Generally Accepted Accounting Principles

Langford & Company, CPAs were approached to report on summary financial statements. The summary financial statements were prepared on a tax basis whereas the complete financial statements were prepared using Generally Accepted Accounting Principles

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

which of the following application would an auditor apply to determine the probability of a corporation's account balance being in error? A) overinvolvement rations B) probability rules C) bayes theorem D) emprical formula
Which of the following statements relating to the role ofprofessional judgment in the financial reporting process is(are) true?a. Different accountants may evaluate similar situationsdifferently.b. The determination of which items should be disclosedin notes to fi nancial statements requires professionaljudgment.c. Once a complete list of generally accepted accountingprinciples is prepared, judgment by accountants will nolonger enter into the fi nancial reporting process.d. The possibility exists that professional judgment latermay prove to have been incorrect.
In what ways was it felt that the pronouncements issued by the Financial Accounting Standards Board would carry greater weight than the opinions issued by the Accounting Principles Board?
Using the concept of justice, evaluate how an auditor would assess the equality of interests in the financial reporting process.
Per AICPA, when an accountant is not independent, the accountant is precluded from issuing a: 1.Compilation report. 2. Review report. 3. Management advisory report. 4.Tax planning report.
Which of the following is not correct about special purpose financial statements? O a. This type of statement is usually required by a shareholder O b.A special-purpose financial statement is a financial report that is intended for presentation to a limited group of users O . This type of statement is usually required by a government entity O d. Special-purpose financial statements may or may not be prepared in accordance with a financial reporting framework
The fair presentation of financial statements in conformity with applicable financial reporting framework is the responsibility of the Shareholders Management Auditors Board of Directors
Understand the types of reports that accompany an entity’s financial statements and the content of the auditors’ standard (unmodified) report.
the conceptual framework for financial reporting states that the purpose of financial reporting is to a. provide information to management accountants for decision making b. support and enhance transparent financial reporting by governments and other public sector entities c. provide tax authorities with information to be used for tax assessment d. none of the above
Who is the auditor for Target? What type of opinion are they giving on Target’s financial statements? (page 32) Refer to “Types of Auditor’s Opinions document.
What is a current issue in accounting, auditing, or tax that interesting to discuss in lengthy details
Which of the following statements are True? a) The financial statements are management's responsibility. b) Management is responsible for adopting sound accounting policies and establishing and maintaining internal control c) The fair presentation of financial statements in conformity with applicable financial reporting framework is an explicit and integral part of management's responsibility. Only b) and c) Only a) Only a) and b) All a) , b) and c)