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NEW QUESTION: 1
This question consists of an item pertaining to possible deficiencies in an accountant's review report.
Jordan & Stone, CPAs, audited the financial statements of Tech Co., a nonissuer, for the year ended
December 31, 20X1, and expressed an unqualified opinion. For the year ended December 31, 20X2, Tech
issued comparative financial statements. Jordan & Stone reviewed Tech's 20X2 financial statements and
Kent, an assistant on the engagement, drafted the accountants' review report below. Land, the
engagement supervisor, decided not to reissue the prior year's auditors' report, but instructed Kent to
include a separate paragraph in the current year's review report describing the responsibility assumed for
the prior year's audited financial statements. This is an appropriate reporting procedure. Land reviewed
Kent's draft and indicated in the Supervisor's Review Notes below that there were several deficiencies in
Kent's draft.
Accountant's Review Report
We have reviewed and audited the accompanying balance sheets of Tech Co. as of December 31, 20X2
and 20X1, and the related statements of income, retained earnings, and cash flows for the years then
ended, in accordance with Statements on Standards for Accounting and Review Services issued by the
American Institute of Certified Public Accountants and generally accepted auditing standards. All
information included in these financial statements is the representation of the management of Tech Co. A
review consists principally of inquiries of company personnel and analytical procedures applied to financial
data. It is substantially less in scope than an audit in accordance with generally accepted auditing
standards, the objective of which is the expression of an opinion regarding the financial statements taken
as a whole. Based on our review, we are not aware of any material modifications that should be made to
the accompanying financial statements. Because of the inherent limitations of a review engagement, this
report is intended for the information of management and should not be used for any other purpose. The
financial statements for the year ended December 31, 20X1, were audited by us and our report was dated
March 2, 20X2. We have no responsibility for updating that report for events and circumstances occurring
after that date.
Jordan and Stone, CPAs
March 1, 20X3
Supervisor's Review Notes
There should be no reference to "updating the prior year's auditor's report for events and circumstances
occurring after that date" in the fourth (separate) paragraph.
A. Correct
B. Incorrect
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Correct. The report should not state that the auditors have no responsibility for updating the prior year's
audit report for events and circumstances that occurred after that date. This type of comment is included in
a report on prospective financial statements, not in a report on the financial statements of a nonissuer.
Planning and Supervision
NEW QUESTION: 2
Which of the following is the output when the following program is executed with a Python Interpreter?
A. a
B. -a
C. 0
D. 1
Answer: D
NEW QUESTION: 3
Which protocol is used by the ACI fabric to learn the location of ESX hosts?
A. Link Layer Discovery Protocol
B. Council of Oracles Protocol
C. Link Aggregation Control Protocol
D. Cisco Discovery Protocol
Answer: D
Explanation:
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Reference: http://kb.vmware.com/selfservice/microsites/search.do?language=en_US&cmd=displayKC &externalId=1007069
NEW QUESTION: 4
What link in the communications chain is defective?
A. The supervisor should not be the source of this type of communication.
B. The supervisor chose the wrong channel for the communication.
C. The meaning of the message would be unclear to the buyer.
D. The supervisor did not account for the noise in the communication chain.
Answer: B
Explanation:
In the communications process, the medium is the channel through which the communication flows. The defect in this case was the channel chosen to inform the employee of his/her loss of job. The supervisor should have spoken directly with the employee. The supervisor ofpurchasing reviewed a memorandum prepared for a buyer in the department. The memo read, "Effective September 30, the corporation has determined that your functions will be absorbed into our parent company's small-unit purchasing function. This will reduce operating costs, improve communications, and facilitate production engineering changes. You will be provided with outplacement support." That should cover the situation," thought the supervisor. Its too bad that I am leaving on vacation before the buyer returns from vacation, but this memo will give the buyer the general idea."
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