An auditor's report would be designated as a report on financial statements following a special purpose financial reporting framework for financial statements when they are:
A)For an interim period and are subjected to a review.
B)Unaudited and are prepared from a client's accounting records.
C)Prepared in accordance with a regulatory basis of accounting other than generally accepted accounting principles.
D)Purported to be in accordance with generally accepted accounting principles but do not include a presentation of the statement of cash flows.

Question

Quizplus · Accepted Answer

A report on financial statements following a special purpose financial reporting framework is issued when the financial statements are prepared in accordance with a regulatory basis of accounting other than generally accepted accounting principles. Option A relates to a review report, Option B to an unaudited financial statements report, and Option D to a report on financial statements based on financial reporting framework for small- and medium-sized entities (FRF for SMEs).

An Auditor's Report Would Be Designated as a Report on Financial