The Basic Purpose of an Audit Is To

question 83

Multiple Choice

The basic purpose of an audit is to:

• A)Assure financial statements are in conformity with GAAP.
• B)Provide as much useful information to decision makers as possible,regardless of cost.
• C)Record changes in the financial position of an organization by applying the concepts of double entry accounting.
• D)Meet an organization's need for accounting information as efficiently as possible.

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Definitions:

Random Variable

A variable representing numerical results from a stochastic process.

Random Experiment

An experiment or process in which all possible outcomes occur randomly with certain probabilities associated with each outcome.

Unbiased Coin

A coin for which the probability of landing on heads or tails is equal, implying fair outcomes.

Discrete Random Variable

A variable that can take on a countable number of distinct values, often representing categories or counts.