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.

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Definitions:

Trough

The lowest point in an economic cycle, marking the transition from recession to recovery.

Peak

The highest point reached by a commodity or market price before a decline.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced.

Purchasing Power

Purchasing power denotes the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.