The GAAS General Standard Relating to the Audit of Financial

question 12

Multiple Choice

The GAAS general standard relating to the audit of financial statements focuses on all of the following except ________.

• A) competence
• B) independence
• C) due professional care
• D) planning

---

Definitions:

Tax Liability

The total amount of taxes an individual or organization owes to the tax authorities.

Income Subsidy

Financial assistance programs provided by governments or institutions to individuals or groups to help supplement their income, typically aimed at the needy or to promote certain economic activities.

After-Tax Income

The amount of net income left after all federal, state, and withholding taxes have been deducted from an individual's earnings.

Tax Liability

The total amount of taxes owed by an individual or a corporation to the tax authorities.