Financial Report Auditing Can Best Be Described As

question 20

Multiple Choice

Financial report auditing can best be described as:

• A)a regulatory function that prevents the issuance of improper financial information.
• B)a professional activity that measures and communicates financial and business data.
• C)a discipline that attests to the results of accounting and other functional operations and data.
• D)a branch of accounting.

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Definitions:

Sole Proprietorship

An enterprise that a single person owns and runs, where there's no legal separation between the proprietor and the enterprise itself.

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Corporation

A legal entity that is separate and distinct from its owners, offering limited liability to its shareholders, and is capable of owning property, being liable, and suing or being sued.

General Partnership

A business arrangement where two or more individuals share ownership and the responsibility for managing the business and its debts.