The Objective of an Audit of the Financial Statements Is

question 116

Multiple Choice

The objective of an audit of the financial statements is an expression of an opinion on

• A) the fairness of the financial statements in all material respects.
• B) the accuracy of the financial statements.
• C) the accuracy of the annual report.
• D) the accuracy of the balance sheet and income statement.

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Definitions:

Professional Corporation

A type of corporation typically formed by lawyers, doctors, and other professionals, where the company acts under corporate status but allows its members to maintain professional liability.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholder equity at a specific point in time.

Current Liabilities

Debts or obligations that are due to be paid within one year or within the normal operating cycle of the business, whichever is longer.

Noncurrent Assets

Assets intended for use over a long-term period, extending beyond one year, which include property, plant, and equipment, along with investments and patents.