Special Reports AU-C Section 805 provides guidance on audits of single financial statements and specific elements, accounts, or items of a financial statement. What are some examples of these types of situations?
The following are examples of single financial statements, each of which would include related notes:
• Balance sheet
• Statement of income or statement of operations
• Statement of retained earnings
• Statement of cash flows
• Statement of assets and liabilities
• Statement of changes in owner's equity
• Statement of revenues and expenses
• Statement of operations by product lines
The following are examples of specific elements, accounts, or items of a financial statement:
• Accounts receivable; allowance for doubtful accounts receivable; inventory; the liability for accrued benefits of a private benefit plan; the recorded value of identified intangible assets; or the liability for incurred but not reported claims in an insurance portfolio, including related notes
• A schedule of externally managed assets and income of a private benefit plan, including related notes
• A schedule of disbursements regarding a lease property, including related notes
• A schedule of profit participation or employee bonuses, including related notes
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Temporary investments such as in trading securities are
a. recorded at cost but reported at fair market value b. recorded at cost and reported at cost c. recorded at cost but reported at lower of cost or fair market value d. recorded at fair market value and reported at fair market value
While U.S. GAAP requires a complete set of financial statements, including a balance sheet, statement of stockholders' equity, income statement, and statement of cash flows, IFRS does not
a. True b. False Indicate whether the statement is true or false
According to the case about the “phone monkey”, call center work
a. is simply a bad job—the work itself is alienating and lacking in intrinsic meaning b. is roughly the same as other jobs in intrinsic meaning c. could be a meaningful job if the employees believe in the mission and values of the organization d. is an example of a job that does not require “intellectual stimulation” from leaders
Realistic information reflects current conditions in the organization.
Answer the following statement true (T) or false (F)