The Performance Section of Principles Underlying an Audit Conducted in Accordance

question 64

Multiple Choice

The Performance section of Principles Underlying an Audit Conducted in Accordance with GAAS states that the auditor is unable to obtain absolute assurance that the financials are free of material misstatements because of inherent limitations which arise from all of the following except:

• A)the presentation of the financial statements based on GAAS.
• B)the nature of financial reporting.
• C)the nature of audit procedures.
• D)the need for the audit to be conducted within a reasonable period of time and so as to achieve a balance between benefit and cost.

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Definitions:

Selling Expenses

Selling Expenses are costs incurred directly from the marketing and selling of products or services, including advertising and salesperson salaries.