Which of the Following Statements Is Incorrect

question 47

Multiple Choice

Which of the following statements is incorrect?

• A) After the work sheet is completed, it can be used to help prepare the financial statements.
• B) On the work sheet, the effects of the accounting adjustments are shown on the account balances.
• C) Working papers are useful aids in the accounting process.
• D) On the work sheet, the adjusted amounts are sorted into columns according to whether the accounts are used in preparing the unadjusted trial balance or the adjusted trial balance.
• E) A worksheet is not a substitute for financial statements.

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Definitions:

Reasonable Assurance

A concept in auditing that suggests although not absolute, there is a high level of confidence in the financial statements accuracy.

Control Activities

Procedures and policies that are implemented by an entity to ensure that its directives are carried out, including safeguarding assets and preventing and detecting errors and fraud.

Errors And Fraud

Incorrect entries or intentional misstatements in financial statements, often leading to incorrect financial reporting.

Control Activity

Actions, policies, and procedures that are implemented to address risks and help ensure that management's directives are carried out.