According to the AICPA's Audit Reporting Principles,which of the Following

question 33

Multiple Choice

According to the AICPA's audit reporting principles,which of the following is incorrect?

• A)The purpose of an audit is to enhance the degree of confidence that users can place in the financial statements.
• B)The purpose of an audit is achieved when an auditor expresses an opinion on the financial statements.
• C)The auditor expresses an opinion as to whether the financial statements are free of material misstatement or states that an opinion cannot be expressed.
• D)The auditor provides positive assurance that the financial statements are free of errors,either intentional or unintentional.

---

Definitions:

Deposits in Transit

Cash and checks that have been received and recorded by a business but not yet reflected in the bank's records.

Bank Statement

A summary of all checking account transactions mailed to the depositor or made available online by the bank each month.

Credit Memo

A document issued by a seller to a buyer, reducing the amount that the buyer owes to the seller under the terms of an earlier invoice.

Note Receivable

A financial asset representing the right to receive a specific amount of money, either on demand or at a specified future date.