What Has Been the Major Recent Proposal by the IAASB

question 42

Multiple Choice

What has been the major recent proposal by the IAASB to reduce the expectations gap?

• A)A statutory limitation on auditor's liability.
• B)A confidential report to those charged with governance.
• C)A separate report to the independent audit regulatory
• D)Amendments to the Auditor's Report.

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Definitions:

Operating Activities

Activities related to the day-to-day functioning of a business that are reflected in its cash flow from operations.

Net Income

The company's net income following the deduction of all costs and taxes from its total revenue.

Investing Activities

Transactions involving the acquisition or sale of long-term assets and investments, reflected in a company’s cash flow statement.

Financing Activities

Activities that result in changes in the size and composition of the equity capital and borrowings of the entity.