Under ASA 200/ IAS 200 the Primary Objective of a Financial

question 23

Multiple Choice

Under ASA 200/ IAS 200 the primary objective of a financial report audit is to:

• A) ensure that the company is free from all fraud
• B) provide assurance about the future viability of the entity
• C) to express an opinion as to whether the financial report is prepared in all material aspects, in accordance with a financial reporting framework
• D) ensure the company complies with all aspects of Corporations Law

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Definitions:

Production Efficiency

A situation where the economy is utilizing all of its resources efficiently, producing what people want at the lowest possible cost.

Production Possibility Frontier

Describes the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for employment.

Ppf

Production Possibility Frontier, a curve depicting all maximum output possibilities for two or more goods given a set of inputs.