According to GAAS, the Overall Objective of a Financial Statement

question 12

Multiple Choice

According to GAAS, the overall objective of a financial statement audit is:

• A)To enable the auditor to express an opinion as to whether the financial statements are prepared in accordance with generally accepted accounting principles.
• B)To reduce audit risk to an acceptably low level.
• C)To determine whether the financial principles adopted by management in preparing the financial statements are acceptable.
• D)To obtain reasonable assurance that the financial statements taken as a whole are free from misstatement, whether due to fraud or error.

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Definitions:

Document Of Title

A transport document that, when appropriately made out, entitles the bearer to claim the goods from the carrier.

Promise

A declaration or assurance that one will do a particular thing or that a particular thing will happen.

Gift

A voluntary transfer of property or funds from one person to another without expectation of receiving something in return.

Mislaid Property

Property that is intentionally placed somewhere but then forgotten by the owner.