Exit CPA-TEST Certified Public Accountant Test: Auditing and Attestation, Business Environment and Concepts, Financial Accounting and Reporting, Regulation
Question 3 of 5
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Q3 Single choice

March, CPA, is engaged by ABC Corp., a client, to audit the financial statements of XYZ Corp., a company that is not March's client. ABC expects to present XYZ's audited financial statements with March's auditor's report to 1st Federal Bank to obtain financing in ABC's attempt to purchase XYZ. In these circumstances, March's auditor's report would usually be addressed to:

  • A

    ABC Corp., the client that engaged March.

  • B

    XYZ Corp., the entity audited by March.

  • C

    1st Federal Bank.

  • D

    Both ABC Corp. and 1st Federal Bank.

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