Which One of the Following Is a Factor That Creates

question 61

Multiple Choice

Which one of the following is a factor that creates a need for an independent auditor's assessment of the financial statement presentation?

• A) Complexity of transactions affecting the financial statements.
• B) Lack of criteria on which to base information.
• C) Remoteness of the user from the organization.
• D) Both A and C.
• E) Both A and B.

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Definitions:

Entity

A legal or business entity that is capable of incurring liabilities and undertaking activities, often used to describe businesses, organizations, or corporations.

Shared Control

A situation where control over an economic activity is shared among two or more parties, typically in a joint venture or partnership.

Joint Control

A contractual arrangement shared by two or more parties, under which no single party has unilateral control over the strategic financial and operating decisions of the venture.

Accounting Standard AASB 127

An Australian Accounting Standard related to the preparation and presentation of consolidated and separate financial statements.