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NEW QUESTION: 1
In its annual report to shareholders, Lake Co. included a separate management report that contained
additional information. Lake's auditor is expressing an unqualified opinion on Lake's financial statements
but has not been engaged to examine and report on this additional information. What is the auditor's
responsibility concerning such a report?
A. The auditor should read the management report and consider whether it contains a material
misstatement of fact.
B. The auditor should add an explanatory paragraph to the report on the financial statements disclaiming
an opinion on the additional information.
C. The auditor has no obligation to read the management report or to verify the accuracy or
appropriateness of its contents.
D. The auditor should request Lake to place the management report in its annual report where it will not
be misinterpreted to be the auditor's assertion.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Choice "D" is correct. The auditor should read other information accompanying the basic financial
statements and consider whether it contains a material inconsistency or material misstatement of fact.
Choice "A" is incorrect. The auditor generally does not add a disclaimer paragraph in this situation.
Choice "B" is incorrect. The auditor should read other information accompanying the basic financial
statements and consider whether it contains a material inconsistency or material misstatement of fact.
Choice "C" is incorrect. Even if the management report were included in the annual report, the auditor still
has the same responsibility regarding both the management report and the annual report: the auditor
should read the information and consider whether it contains a material inconsistency or material
misstatement of fact.

NEW QUESTION: 2
Which two elements of financial management for IT services are mandatory?
A. Budgeting and accounting
B. Accounting and charging
C. Budgeting and charging
D. Costing and charging
Answer: A

NEW QUESTION: 3
The following statement is run:

Which statement about the ACCT_BALANCE column is true?
A. Values stored in the ACCT_BALANCE column are not visible to any user.
B. Values stored in the ACCT_BALANCE column are not visible to users with the ACCOUNTING role.
C. Values stored in the ACCT_BALANCE column are only visible to users with the ACCOUNTING role.
D. Values stored in the ACCT_BALANCE column are visible to all users.
Answer: D