According to the AICPA,the Purpose of an Audit of Financial

question 69

Multiple Choice

According to the AICPA,the purpose of an audit of financial statements is to

• A) Enhance the degree of confidence that intended users can place in the financial statements.
• B) Express an opinion on the fairness with which they present financial position, results of operations, and cash flows in conformity with accounting standards promulgated by the Financial Accounting Standards Board.
• C) Express an opinion on the fairness with which they present financial position, result of operations, and cash flows in conformity with accounting standards promulgated by the U.S. Securities and Exchange Commission.
• D) Obtain systematic and objective evidence about financial assertions and report the results to interested users.

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Definitions:

Middle Class

A social group between the upper and working classes, typically inclusive of professionals, business workers, and others with a moderate to high level of income.

Economic Order

A systematic arrangement of activities and institutions that collectively determine the production, distribution, and consumption of goods and services in a society.

Relative Luminance

A measure of the amount of light that is reflected from or emitted by a surface, viewed from a specific angle, and normalized to a scale from 0 to 1.