Audits of Financial Statements Are Designed to Obtain Reasonable Assurance

question 3

Multiple Choice

Audits of financial statements are designed to obtain reasonable assurance of detecting misstatement due to: $$\begin{array}{l}\begin{array} { lcc } &\text { Fraudulent Finaricial Reporting } & \text { Misappropriation of Assets }\\\text { A } & \text { Yes } & \text { Yes } \\\text { B. } & \text { Yes } & \text { No } \\\text { C. } & \text { No } & \text { Yes } \\\text { D. } & \text { No } & \text { No }\end{array}\end{array}$$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

Understand the classification and reporting of cash flows from investing and financing activities.

Apply the indirect method to calculate cash flows from operating activities given changes in current assets and liabilities.

Understand the direct method of reporting cash flows from operating activities, including calculations involving cash payments for merchandise and cash collections from customers.

Identify the effects of changes in accounts receivable, accounts payable, and inventory on cash flows from operating activities.

---

Definitions:

Power

The ability or capacity to direct or influence the behavior of others or the course of events.

Gender

A social construct related to behaviors, activities, and roles considered appropriate for men, women, and non-binary individuals based on cultural or societal norms, distinct from biological sex.

Rebellion

An act of armed resistance or uprising against established authority or government.

Revolution

A fundamental and relatively sudden change in political power and political organization which occurs when the population revolts against the government, typically due to perceived oppression or dissatisfaction with the current leadership.