Which of the Following Statements Is True of the Rule

question 43

Multiple Choice

Which of the following statements is true of the rule of accounting principles in the AICPA's Code of Professional Conduct,ET Sec.200,Rule 203?

• A) A member shall express an opinion or state affirmatively that the financial statements of an entity are presented in conformity with GAAP.
• B) A member shall state that he or she is not aware of any material modifications that should be made to financial statements if they contain any departure from accounting principles that has a material effect.
• C) A member shall not state that he or she is aware of any material modifications that should be made to financial statements if they contain any departure from accounting principles that has a material effect.
• D) A member shall not express an opinion or state affirmatively that the financial statements of an entity are presented in conformity with GAAP.

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Definitions:

Firm-specific Human Capital

The unique skills, knowledge, and abilities that employees develop through working at a specific firm, contributing to its competitive advantage.

Generic Human Capital

Skills and knowledge that are not specific to a particular job or company but are valuable across different roles and industries.

Human Capital Theory

An economic theory which posits that investing in education and training enhances the productivity and efficiency of individuals, hence contributing to a country's economic development.

Firm-specific Human Capital

The unique skills, knowledge, and experiences that employees develop in a particular company, which are valuable to that company but not easily transferable to other firms.