An auditor’s report on financial statements prepared in conformity with the cash basis of accounting should include a separate emphasis-of-matter paragraph that

A) Refers to the note to the financial statements that describes the basis of accounting.

B) States whether the financial statements are fairly presented in accordance with GAAP.

C) Explains how the results of operations differ from financial statements prepared in accordance with GAAP.

D) Justifies the reasons for departing from GAAP.

Answer rating: 100% (QA)

Answer A Refers to the note to the financial statement that describes the basis of accounting Explan... View the full answer