The GAAS Examination Standards Relating to the Audit of Financial

question 31

Multiple Choice

The GAAS examination standards relating to the audit of financial statements,mandates each of the following requirements,except for

• A)Plan and perform an audit to reduce audit risk to an acceptably low level.
• B)Obtain reasonable assurance that the financial statements,taken as whole,are free of all misstatements
• C)Conduct an audit that is in accordance with CASs.
• D)Obtain a conclusive amount of audit evidence to support your audit opinion.

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Definitions:

Assets

Resources owned by a company that have economic value and can be used to meet its obligations or invest in its operations.

Liabilities

Financial obligations or debts owed by a company to creditors.

Return On Common Stockholders' Equity

This metric measures the profitability from the shareholders' perspective, showing how effectively a company uses equity investment to generate profits.

Profitability

A measure of the efficiency and effectiveness with which a company or business generates profit from its operations, often expressed as a percentage of revenue.