Which of the Following Statements Is True Regarding the Performance

question 40

Multiple Choice

Which of the following statements is true regarding the performance of an assurance service on an information system's reliability by an auditor?

• A)The service will require the auditor to apply all of the auditing standards.
• B)The performing of this service does not require suitable criteria to be available.
• C)Performing the service must be undertaken in accordance with approved accounting standards.
• D)The service may be performed even though there are no standards currently issued by the Australian Auditing and Assurance Standards Board (AUASB).

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Definitions:

Stock Investments

Financial assets consisting of stakes in companies through the purchase of common or preferred stock shares, with the expectation of earning dividends or capital gains.

Net Income

The amount of money that remains after all operating expenses, taxes, and dividends have been paid, representing the company's profit.

Cost Method

An accounting method used to value inventory or assets, based on the price paid to acquire them.

Stock Investments

Financial assets representing shares of ownership in a corporation, which may provide dividends and capital gains to the investor.