CAS 200 Explains That the Purpose of the Financial Statement

question 38

Multiple Choice

CAS 200 explains that the purpose of the financial statement audit is to express an opinion on the financial statements. This opinion is an assessment of whether the financial statements are presented fairly using

• A) Canadian generally accepted accounting principles (GAAP) only.
• B) an applicable financial reporting framework.
• C) management's assertions.
• D) rules of professional conduct.

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Definitions:

Salient Aspect

A feature or characteristic that stands out prominently and is often the focus of attention or consideration.

Kelley's Covariation Model

a psychological theory that explains how individuals attribute cause to behavior based on the consistency, distinctiveness, and consensus of the observed action.

Consensus

General agreement among a group of people or within a community.

Consistency

The principle of maintaining uniformity or stability in one's beliefs, attitudes, and behaviors over time or across situations.