Which of the Following Statements Is Not Included in the Basis

question 170

Multiple Choice

Which of the following statements is not included in the Basis for Opinion section of the standard report?

• A)"These financial statements are the responsibility of [the company's] management."
• B)"Those standards require that we plan and perform the audit to obtain reasonable assurance…"
• C)"…it is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement…"
• D)"We believe that our audit provides a reasonable basis for our opinion"

---

Definitions:

Profit Margin Percentage

A financial metric expressing the ratio of a company's net income to its revenue, indicating the efficiency at which a company can convert sales into net income.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Segment Profitability

The measure of profit or loss generated by a specific market segment, indicating its financial viability.

Marketing Strategy

A business's overall game plan for reaching potential consumers and turning them into customers of their products or services.