hich of the following is not a change in the audit report as a result of the new reporting standard (AS 3101)? a. Specific menti
on of comprehensive income and notes to the financial statements. b. A disclosure of the year the auditor began serving consecutively as the company's auditor. c. An affirmative statement that the audit firm is registered with the Public Company Accounting Oversight Board (PCAOB). d. A statement that the financial statements are the responsibility of the client's management.
Answer: d. A statement that the financial statements are the responsibility of the client's management
Explanation:
The new reporting standard (AS 3101) requires auditor's opinion on the financial statements to be moved to the first paragraph of the Audit report, Requires the Auditor to use section titles to identify and highlight important information, Requires an Auditor to provide a clear clarification that the audit scope includes notes to the financial statement, and also the Auditor is required to disclose the year they began serving consecutively as the company's auditors.
A statement that the financial statements are the responsibility of the client's management is NOT part of changes brought by AS 3101
c.Equilibrium price will rise; equilibrium quantity will rise.
Explanation:
If there's an increase in demand and supply remains unchanged. The demand curve would shift to the right and there would be an excess of demand over supply. Equilibrium price and quantity would increase.
