The Auditor Must Evaluate Whether the Financial Statements Are Consistent

question 11

Multiple Choice

The auditor must evaluate whether the financial statements are consistent with the requirements of the applicable financial reporting framework for which of the following items?

• A)the financial statements adequately disclose the significant accounting policies used
• B)the accounting policies selected are consistent with management's policies
• C)the accounting estimates made by management are reasonable
• D)the information presented in the accounting records is relevant,reliable,comparable,and understandable
• E)the financial forecasts made by management are accurate
• F)both A and C
• G)both C and E
• H)both D and E

---

Definitions:

Pi Bonds

Covalent chemical bonds formed by the side-to-side overlap of p orbitals, characterizing the electron density located above and below the axis of the bonded atoms.

Sigma Bonds

Single covalent bonds formed between two atoms due to the head-on overlap of atomic orbitals, characterized by shared electron density along the axis connecting the nuclei.

HNC Bond Angle

The geometric angle formed between hydrogen, nitrogen, and carbon atoms in certain molecular structures, relevant in understanding molecular shape and reactivity.

Cation

A positively charged ion that has lost one or more electrons.