A disclaimer of opinion on the financial statements that was issued because of a scope limitation on an audit differs from a compilation report on the unaudited statements of a nonissuer in that
A. A compilation report offers some assurances. A disclaimer offers none.
B. A compilation relates only to income statements and balance sheets. A disclaimer pertains to all financial statements presented.
C. Any procedures applied in a compilation should be described in the report, but procedures applied when a disclaimer is issued should not be described.
D. A compilation report states what service was performed. A disclaimer states what service was to be performed.
Ans: D. A compilation report states what service was performed. A disclaimer states what service was to be performed.
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The weighted average cost of capital is the minimum required return that must be earned on additional investment if firm value is to remain unchanged
Indicate whether this statement is true or false.
The primary objective of financial reporting focuses on
A) consistency. B) representational faithfulness. C) validity. D) decision usefulness in making investment, credit and resource allocation decisions. E) the matching concept.