After Examining a Firm's Accounting Information System, an Auditor Concluded

question 44

Multiple Choice

After examining a firm's accounting information system, an auditor concluded that the firm's financial statements are fairly presented, thus fulfilling which auditing standard?

• A) Opinion.
• B) Disclosure.
• C) GAAP.
• D) Evidence.

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Definitions:

Return On Equity

An indicator of how effectively a company uses investor funds to produce profit growth, determined by dividing the net income by the equity of shareholders.

Inventory Turnover

A measure of how many times a company's inventory is sold and replaced over a certain period of time.

Interval Measure

A statistical metric used to express the amount of variance or uncertainty between data points in a series.

Receivable Turnover

A financial ratio that measures how efficiently a company uses its assets by calculating how many times a company can turn its accounts receivable into cash during a period.