What Are the Two Topics That Attestation Standards Provide Guidance

question 40

Multiple Choice

What are the two topics that attestation standards provide guidance on?

• A) They provide a plan for the engagement and criteria about who can participate in the engagement.
• B) They provide guidance about gathering evidence regarding specific assertions and communicate an opinion on the fairness of the presentation to a third party.
• C) They provide sufficient assurance on subject matter and appropriate assurance about reporting.
• D) They provide guidance on reviewing evidence and compiling evidence.

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Definitions:

Periodic Inventory System

An inventory tracking method where physical counts are performed at specific intervals to determine the cost of goods sold and ending inventory.

Cost of Goods Sold

Directly attributable expenses for creating the goods that a company sells, including materials and labor costs.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, highlighting the net profit or loss.

Perpetual Inventory System

An immediate inventory recording technique utilizing computerized point-of-sale systems and enterprise asset management software to document sales or purchases.