This Type of Audit Is Completed to Determine Whether or Not

question 55

Multiple Choice

This type of audit is completed to determine whether or not the client has prepared and presented its financial statements fairly, in accordance with established financial accounting criteria.

• A)GAAP audit
• B)Financial statement audit
• C)Compliance audit
• D)Fair application audit

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Definitions:

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, often referred to as the net assets or shareholders' equity.

Assets

are resources owned by a business, having economic value and expected to provide future benefits.

Cash

A form of liquid asset representing money in physical or digital form that can be readily used for transactions.

Services Rendered

Refers to the completion of work or the delivery of a service for which payment is due.