Which of the Following Statements Is True of the Rule

question 43

Multiple Choice

Which of the following statements is true of the rule of accounting principles in the AICPA's Code of Professional Conduct,ET Sec.200,Rule 203?

• A) A member shall express an opinion or state affirmatively that the financial statements of an entity are presented in conformity with GAAP.
• B) A member shall state that he or she is not aware of any material modifications that should be made to financial statements if they contain any departure from accounting principles that has a material effect.
• C) A member shall not state that he or she is aware of any material modifications that should be made to financial statements if they contain any departure from accounting principles that has a material effect.
• D) A member shall not express an opinion or state affirmatively that the financial statements of an entity are presented in conformity with GAAP.

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Definitions:

Internal Reporting

The generation and analysis of financial and operational information within an organization, used for decision-making and performance assessment.

SEC

The U.S. Securities and Exchange Commission is a federal agency tasked with overseeing the securities sector and safeguarding investors.

GAAP

Generally Accepted Accounting Principles; a common set of accounting rules and standards used in the United States.

Par Value

The face value of a bond or stock as stated by the issuing company, which may differ from its market value.