GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Financial accounting provides information to management
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Book-keeping includes interpretation of financial statements
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Accounting aims to communicate financial information to investors only
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Chartered accountant as an auditor makes the financial statements reliable to the users
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Detailed explanation-1: -Which of the following statements is correct concerning an auditor’s responsibilities regarding financial statements in an audit conducted in accordance with GAAS? An auditor’s responsibilities for audited financial statements are confined to the expression of the auditor’s opinion.
Detailed explanation-2: -The auditor has a responsibility to plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud.
Detailed explanation-3: -Which of the following is true with respect to the auditors’ report on summary financial statements? Auditors can only issue a report on summary financial statements if they have expressed an unmodified opinion on the full financial statements.
Detailed explanation-4: -The correct answer is c) Both the income statement and the statement of cash flows show the result of a company’s operating activities. Operating activities are transactions that are relating to the operations of the company, or transactions that would affect net income during the period.