The accounting profession recognises the need for uniformity in reporting:
A) as a means of avoiding confusion.
B) because ASA 700 and ASA 705 have defined and enumerated the types of audit reports that should be included with general-purpose financial reports.
C) because users would have considerable difficulty interpreting the meaning of an auditor's report if each were an original creation.
D) all of the above

Question

Quizplus · Accepted Answer

Uniformity in reporting is necessary to avoid confusion among users of financial reports. In addition, the auditing standards (ASA 700 and ASA 705) in Australia have defined and enumerated the types of audit reports that should be included with general-purpose financial reports, further emphasizing the need for uniformity. If each auditor's report were an original creation, users would have considerable difficulty interpreting the meaning of the report. Therefore, all the given options are correct.

The Accounting Profession Recognises the Need for Uniformity in Reporting