How Does the FASB Conceptual Framework Link Accounting Information Systems

question 24

Multiple Choice

How does the FASB Conceptual Framework link accounting information systems with auditing?

• A)Auditors must discuss whether the outputs of the AIS fulfill each of the qualitative characteristics in detail.
• B)Auditors prepare a report on some of the outputs of the AIS; those outputs contain the elements of financial statements from the conceptual framework.
• C)The purpose of accounting as stated in the conceptual framework is the same as the purpose of an AIS and the purpose of auditing.
• D)The conceptual framework does not link AIS with auditing.

---

Definitions:

Phenomena

Observable events or occurrences that can be investigated scientifically.

Theory

A set of principles on which the practice of an activity is based or an explanation of the principles of phenomena.

Confirmation Bias

A cognitive bias that involves favoring information that confirms previously existing beliefs or biases.

Principle Of Falsifiability

The criterion for demarcating scientific from non-scientific statements; a theory must be testable and potentially able to be proven false.