An Audit Involves the Examination of the fiNancial Reports (Prepared

question 27

True/False

An audit involves the examination of the financial reports (prepared by the management of the company) to ensure that they represent what they claim and conform with IFRS.

---

Definitions:

Common Shares

Equity investments that represent ownership in a company, providing voting rights and potential dividends to shareholders.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders.

Credit Card Receivables

The outstanding balances owed to a company from customers' credit card transactions, considered an asset.

Student Loans

Loans offered to students to finance their education, typically with terms that defer payments until after graduation.