The Objective of the Second PCAOB Standard of Reporting Is

question 58

Multiple Choice

The objective of the second PCAOB Standard of Reporting is to provide assurance that

• A) There are no variations in the format and presentation of financial statements.
• B) Substantially different transactions and events are not accounted for on an identical basis.
• C) The auditor is consulted before material changes are made in the application of accounting principles.
• D) The comparability of financial statements between periods is not materially affected by changes in accounting principles that are not disclosed.

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Definitions:

Upper Quartile

The value below which 75% of the data points in a dataset fall, also known as the third quartile.

Percentile

A measure that indicates the value below which a given percentage of observations in a group of observations falls.

Five-number Summary

Consists of the minimum, first quartile, median, third quartile, and maximum, providing a quick overview of the distribution of a dataset.

Distribution

The way in which values in a dataset are spread out or distributed across a range of values or categories.