Types and Components of Audits
Answer each of the following questions in one or two paragraphs.
- Explain why an audit of corporate financial statements-Income Statement, Capital Statement, Income Statement, and Statement of Cash Flows-is important to individuals who use those financial statements to make investment decisions and/or lending decisions.
- List and describe the four types (categories) of audit reports related to audits of corporate financial statements. State the situations that would warrant each type of audit report.
- List and describe the main components of an unqualified audit report.