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When an auditor performs a physical inventory count, the auditor can obtain evidence regarding the...

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Accounting

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When an auditor performs a physical inventory count, the auditor can obtain evidence regarding the assertion of Existence by selecting items to be counted from the inventory listing at the balance sheet date and going to count those items in the warehouse. True False Which of the following statements is incorrect? A company prepared its F/S on the regulatory basis of accounting but did not include a footnote in the F/S describing the basis of accounting. In this situation, the auditor would issue an unmodified (unqualified) opinion on the F/5. An audit report on a set of F/S prepared on the regulatory basis of accounting should have an "other matter" paragraph restricting its use. A nonissuer asked a CPA to audit F/S prepared on the same basis of accounting as the entity's tax return. This is an allowable specialpurpose financial reporting framework. A client could not locate deposit slips for six months of the year. In this situation, the auditor would most likely issue a disclaimer of opinion for F/S prepared on the cash basis of accounting

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