The Aim of an External Audit Is to Develop an Exhaustive

question 19

True/False

The aim of an external audit is to develop an exhaustive list of every possible factor that could influence the business.

---

Definitions:

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, culminating in the net profit or loss.

Balance Sheet

A financial statement that gives a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and shareholders' equity.

Excess of Revenue

The amount by which revenue exceeds the expenses in a given period, indicating profit.

Expenses Incurred

Costs that a company has become legally obligated to pay, often in the course of its normal business operations.