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:

Specified Purpose

A defined goal or objective that a project or venture aims to achieve.

Limited Partnership

A partnership structure where there is at least one general partner who manages the business and assumes unlimited liability, and one or more limited partners who provide capital and have liability only up to the amount of their investment.

Unlimited Liability

Refers to a legal structure where the owners are personally responsible for the debts and obligations of the business without any limit, potentially impacting their personal assets.

Legal Agreement

A contract that outlines terms and conditions between parties, binding them legally.