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:

Competitive Strategies

Approaches that businesses adopt to improve their market position and achieve a competitive advantage over rivals.

Performance Determinants

Critical elements or factors that significantly impact how well an individual or system performs.

Interdependencies

Mutual dependence between things, where changes in one element can affect outcomes in another within a system or process.

Leaders

Leaders are individuals who have the ability to influence and direct others towards achieving a common goal or vision.