Audits of Financial Statements Are Designed to Obtain Reasonable Assurance

question 22

Multiple Choice

Audits of financial statements are designed to obtain reasonable assurance of detecting material misstatements due to: $\begin{array}{lll}&\text { Errors } & \text { Misappropriation of Asset: } \\\text { A. } & \text { Yes } & \text { Yes } \\\text { B. } & \text { Yes } & \text { No } \\\text { C. } & \text { No } & \text { Yes } \\\text { D. } & \text { No } & \text { No }\end{array}$
 

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

---

Definitions:

Cash

Money in the form of coins or banknotes, especially that of a country or a particular denomination.

Bonds Payable

Long-term liabilities representing borrowed money that the company is obligated to repay to bondholders, typically at fixed interest rates.

Issuance

The process of offering new securities for sale to investors, typically by a corporation or government.

Face Amount

The nominal value printed on the face of a financial instrument, such as a bond or insurance policy, representing the amount due at maturity.