The following audit report contains departures from the standard wording. Identify the word, phrase, or omission that
Question:
The following audit report contains departures from the standard wording. Identify the word, phrase, or omission that departs from the standard wording and state why the word, phrase, or omission conveys an improper message to readers of the report.
{Report of Independent Public Accountants}
We have audited the accompanying financial statements of Hogeye Ranch Company as of December 31, 19X4. Management is responsible for maintaining the supporting accounting records. We assisted management in preparing the financial statements, and we have a responsibility to express an opinion on those financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing procedures. Those procedures require that we plan and perform the audit to obtain assurance about whether the financial statements are free of errors. An audit includes examining, on a test basis, evidence supporting the amounts in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our procedures provide a reasonable basis for our audit.
In our opinion, the financial statements referred to above present the financial position of Hogeye Ranch Company as of December 31, 19X4, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles.
Step by Step Answer:
Auditing An Assertions Approach
ISBN: 9780471134213
7th Edition
Authors: G. William Glezen, Donald H. Taylor