Which of the Following Statements Is True When the CPA

question 53

Multiple Choice

Which of the following statements is True when the CPA has been engaged to perform an audit of financial statements?

• A)The CPA firm is engaged and paid by the client;therefore,the firm has primary responsibility to be an advocate for the client.
• B)The CPA firm is engaged and paid by the client,but the primary beneficiaries of the audit are those who rely on the financial statements.
• C)Should a situation arise where there is no convincing authoritative standard available,and there is a choice of actions which could impact a client's financial statements,the CPA is free to endorse the choice which is in the investors' interests.
• D)The CPA firm has primary responsibility to the FASB.

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Definitions:

Green Tree Frogs

A common name for various species of arboreal frogs known for their bright green color, often found in humid, forested areas.

Population

The total number of individuals of a specific species living within a particular geographical area.

Ecology

The branch of biology that studies the interactions among organisms and their biophysical environment, including both biotic and abiotic components.

Remote Sensing

The technique of obtaining information about objects or areas from a distance, typically from aircraft or satellites, used in mapping and observing environmental changes.