Finance and financial system

Smith and Walker, CPAs

Libby. Financial Accounting.

Ex 4. Define whether the statements below are true or false.

1.     The report of independent accountants (audit report) describes the auditors’ opinion of the fairness of the financial statement presentations and the evidence gathered to support that opinion.

2.     An audit is an examination of the newspaper reports to assure that they represent what they claim and conform with generally accepted accounting principles.

3.     A primary function of the accountants in organizations is to provide data that are useful for internal managerial decision making.

4.     Under market conditions the controlling function of the state will loose its importance.

5.     In some cases managers starts business operations without licenses, avoid paying excise duties.

6.     Results of audits reveal lots of breaches of the tax law and misuses of public money.

7.     Auditing has two functions: to reveal undesirable practices and not to prevent their recurring in the future.

8.     The most familiar type of auditing is the administrative audit, or pre-audit.