Which of the Following Has the Least Impact Upon the Reliability

question 57

Multiple Choice

Which of the following has the least impact upon the reliability of financial statements issued by publicly owned corporations?

• A) Federal securities laws.
• B) Professional judgment of the accountants who prepare the financial statements.
• C) Audits of the financial statements by the Internal Revenue Service.
• D) Competence and integrity of the CPAs who perform audits.

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Definitions:

Federal Income Tax

A tax levied by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Time Tracking

The process of recording and measuring the amount of time spent on tasks or activities.

Subcontractors

Independent workers or companies hired on a contractual basis to perform part of the work assigned in a project.

FICO

A data analytics company known for creating the most widely used consumer credit scores that determine creditworthiness.