A CPA's standard report on audited financial statements would be inappropriate if it referred to:

Question

Quizplus · Accepted Answer

Choice "D" is correct. The CPA's standard report on audited financial statements does not include matters related to the auditor's assessment of specific risk factors. Choice "A" is incorrect. The CPA's standard report on audited financial statements states that, "These financial statements are the responsibility of the Company's management." Choices "B" and "C" are incorrect. The CPA's standard report on audited financial statements states that, "An audit also includes assessing the accounting principles used and significant estimates made by management."

A CPA's Standard Report on Audited Financial Statements Would Be