‘Other information’ refers to information other than the financial statements which is presented in the annual reports of the company. Such ‘other information’ contains all the details presented in the annual report ranging from director’s report to future outlook or assessment of company made in the annual report of the company. The auditor has no obligation regarding ‘other information’, however, is bound by professional auditing standards and best practices to go through such information and ensure that no inconsistency is observed in such information with the presented financial statements. To select: The correct option.

Question

Want to see the full answer?

Answer 1

Question

Chapter 18, Problem 18.19MCQ

To determine

Introduction:

‘Other information’ refers to information other than the financial statements which is presented in the annual reports of the company.

Such ‘other information’ contains all the details presented in the annual report ranging from director’s report to future outlook or assessment of company made in the annual report of the company.

The auditor has no obligation regarding ‘other information’, however, is bound by professional auditing standards and best practices to go through such information and ensure that no inconsistency is observed in such information with the presented financial statements.

To select: The correct option.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

What are the five management assertions that serve as basis for financial statements audit programs?

PROBLEM 2 On July 1, 2022, LTU Contracting, Inc. purchased a new Peiner SK575 Tower Crane for a total cost of $875,000. The crane has an estimated useful life of five (5) years. For financial reporting (book) purposes, the company utilizes straight line depreciation. For tax purposes, the equipment is depreciated over five years utilizing the 200% declining balance method. A. Prepare a table that computes the book and tax depreciation for each year of the useful life and determine the difference in book value between each method at the end of each year. B. On July 1st, 2025, the company is considering selling the crane for $500,000. Compute what the gain or loss would have been at that time for both book and tax purposes.

Brightwoodę Furniture provides the following financial data for a given enod: Sales Aount ($) Per Unit ($) 150,000 13 Less Variable E - L96,000 13 Contribwaon Margin c 1C Less Fixed Expenses $5,000 et Income 125,000 a. What is the company's CM ratio? b. If quarterly sales increase by $5,200 and there is no change in fixed expenses, by how much would you expect quarterly net operating income to increase?