Which of the Following Items Is Not Contained in the Standard

question 86

Multiple Choice

Which of the following items is not contained in the standard report on a review of separately issued interim financial statements of public companies?

• A) A description of the information reviewed.
• B) A statement indicating that the standards of the PCAOB were followed in performing the review.
• C) A description of the nature of the review.
• D) Positive assurance that the auditor is not aware of any material departures from GAAP.

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Definitions:

Return On Equity (ROE)

A measure of financial performance, calculated by dividing net income by shareholder equity, indicating how well a company uses investments to generate earnings growth.

Interest Expense

The cost incurred by an entity for borrowed funds over a period, typically noted on the income statement.

Income Taxes

Taxes imposed by the government on the income earned by individuals and businesses within its jurisdiction.

Debt-To-Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.