Audit Evidence to Support an Opinion About the Fairness of a Client's

question 101

True/False

Audit evidence to support an opinion about the fairness of a client's financial statements consists entirely of written information.

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Definitions:

Debt-to-equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets, key in assessing financial leverage.

Assets

Resources owned by a business or individual that are expected to provide future economic benefits.

Equity

The value of an ownership interest in property or a business, after deducting liabilities from assets.

Return on Sales Ratio

A financial ratio that measures the efficiency of a company in generating operating profit from its revenue.