Types and components of audits

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 repor

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