Auditors Try to Achieve Independence in Appearance in Order To

question 40

Multiple Choice

Auditors try to achieve independence in appearance in order to:

• A)maintain public confidence in the profession.
• B)become independent in fact.
• C)comply with the responsibilities principle.
• D)maintain an unbiased mental attitude.

---

Definitions:

Net Sales

Revenue from sales after deducting returns, allowances, and discounts.

Gross Profit Rate

The gross profit rate is the percentage of revenue that exceeds the cost of goods sold, indicating the efficiency of a company in producing and selling its products for a profit.

Net Sales

The amount of sales revenue remaining after deducting returns, allowances for damaged or missing goods, and discounts from the total sales.

Gross Profits

The difference between net sales and the cost of goods sold, indicating the basic profitability of the products or services sold.