A2 - Other Reports, Engagements, and Accounting Services Flashcards Preview

CPA EXAM - AUD > A2 - Other Reports, Engagements, and Accounting Services > Flashcards

Flashcards in A2 - Other Reports, Engagements, and Accounting Services Deck (2)
Loading flashcards...
1
Q

When a CPA reports on audited financial statements prepared on the cash receipts and disbursements basis of accounting, the report should:

A

State that the basis of presentation is a comprehensive basis of accounting (OCBOA) other than GAAP

2
Q

An entity prepares its financial statements on its income tax basis. A description of how that basis differs from GAAP should be included in the:

A

Notes to the financial statements.