The disclosures related to the financial statements are usually found in
A)the auditor's work papers
B)the footnotes to the financial statements
C)a separate report attached to the financial statements
D)in the "Management Discussion and Analysis" section of the annual report
E)in the internal control report
F)both A and C
G)both B and D
H)both D and E

Question

Quizplus · Accepted Answer

The footnotes to the financial statements usually contain disclosures related to the financial statements, while the "Management Discussion and Analysis" section of the annual report contains additional relevant information. Therefore, option G (both B and D) is the best choice. The auditor's work papers and internal control report are not typically included in the financial statements, and a separate report attached to the financial statements is not a common practice.

The Disclosures Related to the Financial Statements Are Usually Found