Which of the Following Is Not a Consequence of the Standards

question 7

Multiple Choice

Which of the following is not a consequence of the standards overload problem to small businesses?

• A) If a small business omits a GAAP requirement from audited financial statements, a qualified or adverse opinion may be rendered.
• B) Small businesses do not need to keep financial records
• C) The cost of complying with GAAP requirements may cause a small business to forgo the development of other, more relevant information.
• D) Small CPA firms that audit smaller companies must keep up to date on all the same requirements as large international firms, but they cannot afford the specialists that are available on a centralized basis in the large firms.

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Definitions:

Career Management

The process where individuals or their employers plan and implement activities and goals for their professional development and career progression.

Displaced Workers

Individuals who have lost their jobs due to economic changes, technological advancements, or restructuring within companies, leading to involuntary unemployment.

Inplacement

The process of strategically positioning employees within an organization to optimize their skills and the company's needs, unlike external hiring.

Interactional Justice

A concept in organizational behavior that concerns the quality of the interpersonal treatment people receive when organizational procedures are implemented.