Which Party Involved in the Financial Reporting Process Provides Assurance

question 45

Multiple Choice

Which party involved in the financial reporting process provides assurance that financial statements prepared by management fairly present the financial position and performance of the company?

• A)standard setters
• B)regulators
• C)accounting preparers
• D)auditors

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Definitions:

Parent Company

A company that holds sufficient shares in another business to dictate its management and operations through the power to influence or choose its board of directors.

Business Combination

Mergers or acquisitions aimed at consolidating resources for growth and competitive advantage.

Pushdown Accounting

The method of accounting for acquisitions where the purchase price of a subsidiary is reflected at fair value on the subsidiary's financial statements, rather than the parent company's.