Which of the Following Is Not a Consequence of the Standards

question 7

Multiple Choice

Which of the following is not a consequence of the standards overload problem to small businesses?

• A) If a small business omits a GAAP requirement from audited financial statements, a qualified or adverse opinion may be rendered.
• B) Small businesses do not need to keep financial records
• C) The cost of complying with GAAP requirements may cause a small business to forgo the development of other, more relevant information.
• D) Small CPA firms that audit smaller companies must keep up to date on all the same requirements as large international firms, but they cannot afford the specialists that are available on a centralized basis in the large firms.

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Definitions:

DSM-5 Reliability

The consistency and dependability of the diagnoses as outlined in the Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition.

Field Testing

The process of evaluating the performance, durability, or suitability of a product under real-world conditions outside the laboratory.

Systematic Clinical Assessments

A structured process of evaluating the nature and severity of psychological disorders through standardized tests and methods.

Economic Pressures

Financial stressors that influence individuals' or entities' decisions due to constraints on resources.