Provide the comment on the given statement.

Question

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Answer 1

Question

Chapter 17, Problem 1RQ

To determine

Provide the comment on the given statement.

Expert Solution & Answer

Explanation of Solution

Audit report:

The audit report is a written opinion of the auditor on the fair representation of the financial statements of the company. The audit report is prepared in a specific manner as mandated by the applicable financial reporting framework. It examines whether the company has followed the GAAP guidelines.

Comparative financial statements:

Financial statements usually represented through the comparative form for the current year as well as one or more previous years. Such financial statements are prepared based on the general purpose financial reporting framework.

Comment on the given statement:

The given statement is not correct. The comparative financial statements imply the comparison between the current year and the previous year’s financial statements of the same company. Thus, it cannot be said that an audit report on comparative financial statements ordinarily compares current year financial statements of two or more companies with one another.

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Students have asked these similar questions

Which of the following is not included in the standard (unmodified) report on the financialstatements?a. An identification of the financial statements that were audited.b. A general description of an audit.c. An opinion that the financial statements present financial position in accordance withGAAP.d. An emphasis-of-matter paragraph commenting on the effect of economic conditions onthe entity

The subject matter of information in auditing includes what? A. The financial statements of the enterprise (e.g. Balance Sheet, Income Statement, Statement of Cash Flow, Statement of Changes in Shareholder’s Equity and the notes to financial statements) B. Financial reporting framework C. Assets and Liabilities D. Income and Expenses

Which of the following accounting concepts do accountantsand auditors assess by using financial analyses?a. Time period. c. Full disclosure.b. Separate entity. d. Going-concern assumption.

Answer 2

Question

Chapter 17, Problem 1RQ

To determine

Provide the comment on the given statement.

Expert Solution & Answer

Explanation of Solution

Audit report:

The audit report is a written opinion of the auditor on the fair representation of the financial statements of the company. The audit report is prepared in a specific manner as mandated by the applicable financial reporting framework. It examines whether the company has followed the GAAP guidelines.

Comparative financial statements:

Financial statements usually represented through the comparative form for the current year as well as one or more previous years. Such financial statements are prepared based on the general purpose financial reporting framework.

Comment on the given statement:

The given statement is not correct. The comparative financial statements imply the comparison between the current year and the previous year’s financial statements of the same company. Thus, it cannot be said that an audit report on comparative financial statements ordinarily compares current year financial statements of two or more companies with one another.

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Answer 3

Question

Chapter 17, Problem 1RQ

To determine

Provide the comment on the given statement.

Expert Solution & Answer

Explanation of Solution

Audit report:

The audit report is a written opinion of the auditor on the fair representation of the financial statements of the company. The audit report is prepared in a specific manner as mandated by the applicable financial reporting framework. It examines whether the company has followed the GAAP guidelines.

Comparative financial statements:

Financial statements usually represented through the comparative form for the current year as well as one or more previous years. Such financial statements are prepared based on the general purpose financial reporting framework.

Comment on the given statement:

The given statement is not correct. The comparative financial statements imply the comparison between the current year and the previous year’s financial statements of the same company. Thus, it cannot be said that an audit report on comparative financial statements ordinarily compares current year financial statements of two or more companies with one another.

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Answer 4

Question

Chapter 17, Problem 1RQ

To determine

Provide the comment on the given statement.

Expert Solution & Answer

Explanation of Solution

Audit report:

The audit report is a written opinion of the auditor on the fair representation of the financial statements of the company. The audit report is prepared in a specific manner as mandated by the applicable financial reporting framework. It examines whether the company has followed the GAAP guidelines.

Comparative financial statements:

Financial statements usually represented through the comparative form for the current year as well as one or more previous years. Such financial statements are prepared based on the general purpose financial reporting framework.

Comment on the given statement:

The given statement is not correct. The comparative financial statements imply the comparison between the current year and the previous year’s financial statements of the same company. Thus, it cannot be said that an audit report on comparative financial statements ordinarily compares current year financial statements of two or more companies with one another.

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Answer 5

Chapter 17, Problem 1RQ

To determine

Provide the comment on the given statement.

Expert Solution & Answer

Explanation of Solution

Audit report:

The audit report is a written opinion of the auditor on the fair representation of the financial statements of the company. The audit report is prepared in a specific manner as mandated by the applicable financial reporting framework. It examines whether the company has followed the GAAP guidelines.

Comparative financial statements:

Financial statements usually represented through the comparative form for the current year as well as one or more previous years. Such financial statements are prepared based on the general purpose financial reporting framework.

Comment on the given statement:

The given statement is not correct. The comparative financial statements imply the comparison between the current year and the previous year’s financial statements of the same company. Thus, it cannot be said that an audit report on comparative financial statements ordinarily compares current year financial statements of two or more companies with one another.

Answer 6

Chapter 17, Problem 1RQ

To determine

Provide the comment on the given statement.

Expert Solution & Answer

Explanation of Solution

Audit report:

The audit report is a written opinion of the auditor on the fair representation of the financial statements of the company. The audit report is prepared in a specific manner as mandated by the applicable financial reporting framework. It examines whether the company has followed the GAAP guidelines.

Comparative financial statements:

Financial statements usually represented through the comparative form for the current year as well as one or more previous years. Such financial statements are prepared based on the general purpose financial reporting framework.

Comment on the given statement:

The given statement is not correct. The comparative financial statements imply the comparison between the current year and the previous year’s financial statements of the same company. Thus, it cannot be said that an audit report on comparative financial statements ordinarily compares current year financial statements of two or more companies with one another.

Answer 7

Chapter 17, Problem 1RQ

To determine

Provide the comment on the given statement.

Answer 8

Expert Solution & Answer

Explanation of Solution

Audit report:

The audit report is a written opinion of the auditor on the fair representation of the financial statements of the company. The audit report is prepared in a specific manner as mandated by the applicable financial reporting framework. It examines whether the company has followed the GAAP guidelines.

Comparative financial statements:

Financial statements usually represented through the comparative form for the current year as well as one or more previous years. Such financial statements are prepared based on the general purpose financial reporting framework.

Comment on the given statement:

The given statement is not correct. The comparative financial statements imply the comparison between the current year and the previous year’s financial statements of the same company. Thus, it cannot be said that an audit report on comparative financial statements ordinarily compares current year financial statements of two or more companies with one another.