Which of the Following Is Not One of the Reasons

question 70

Multiple Choice

Which of the following is not one of the reasons that auditors provide only reasonable assurance on the financial statements?

• A) The auditor commonly examines a sample, rather than the entire population of transactions.
• B) Accounting presentations contain complex estimates which involve uncertainty.
• C) Fraudulently prepared financial statements are often difficult to detect.
• D) Auditors believe that reasonable assurance is sufficient in the vast majority of cases.

---

Definitions:

Profit (or Loss) Per Unit

The amount of money gained or lost on each unit of a product sold, calculated as the difference between the selling price and the cost of production.

Total Profit

is the financial gain made by a business after subtracting all expenses, taxes, and costs associated with generating the revenue.

Profit Per Unit

The amount of profit generated by selling one unit of a product or service.

Profit Maximizing

The process or strategy employed by businesses to increase their profits to the highest possible level given their resources and constraints.