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For an entity that does financial statements generally would not refer to:
Suggested Answer: D
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Choice 'd' is correct. The auditor's standard report does not refer to the entity's internal control.
Choice 'a' is incorrect. The auditor's standard report refers to 'significant estimates made by management' in the scope paragraph.
Choice 'b' is incorrect. The auditor's standard report refers to 'assessments of the entity's accounting principles' in the scope paragraph.
Choice 'c' is incorrect. The auditor's standard report states management's responsibility for the financial statements in the introductory paragraph.
9 comments · newest first
MA
Marvel
11 months ago
B is also a good point, but I feel like it’s more about A.
DO
Dominic
12 months ago
I agree with Lizbeth, A is the right choice here.
MA
Marguerita
12 months ago
Wait, are we really not talking about internal controls? That seems odd.
LI
Lizbeth
12 months ago
I think it’s A, management estimates are usually not highlighted.
TA
Tamra
1 year ago
Definitely not D, internal control is super important!
YA
Yaeko
1 year ago
Hmm, I'm a bit unsure about this one. The concepts of corporate criminal liability can be tricky. I'll need to think through each option and try to recall the key elements that are usually required.
JO
Joana
1 year ago
This is similar to a practice question where we ranked funds based on their risk-adjusted returns. I think I see a pattern.
FR
Francene
1 year ago
I practiced a similar question last week where we had to discount cash flows. I'm not entirely sure about the PI result though.
MA
Maryann
1 year ago
For money laundering questions, always look for methods that seem sophisticated but not overtly criminal. Option B feels most strategic.