How Do Auditors Make the Following Representations When Issuing the Standard

question 36

Multiple Choice

How do auditors make the following representations when issuing the standard auditors' report? $\begin{array}{ccc}\text { Consistent Application of Accounting } & \text { Independence } \\\text { Principles } & \text { Requirement }\end{array}$
A. $\begin{array}{lll} &&&&& \text { Implicitly } &&&&&&& \text { Explicitly } \\\end{array}$
B. $\begin{array}{lll} &&&&& \text { Explicitly } &&&&&&& \text { Implicitly } \\\end{array}$
C. $\begin{array}{lll} &&&&& \text { Implicitly } &&&&&&& \text { Explicitly } \\\end{array}$
D. $\begin{array}{lll}&&&&&\text { Explicitly }&&&&&&& \text { Explicitly }\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Present Value

The current value of future cash flows discounted at the appropriate discount rate, reflecting the time value of money.

Annual Payment

A payment made once a year for services, subscriptions, or obligations - often used in the context of loans, leases, and insurance premiums.

Tax Deductible

Expenses or payments that can be subtracted from gross income to reduce the amount of income subject to tax.

Bonds

Long-term securities issued by corporations, municipalities, or governments to raise funds, paying interest to holders.