Which Would NOT Typically Be an Objective of a Financial

question 23

Multiple Choice

Which would NOT typically be an objective of a financial statement audit?

• A) Ensuring the existence of assets and liabilities and occurrence of income and expenses
• B) Evaluating the economy and efficiency with which scarce resources are used
• C) Verifying that all financial statement items are properly presented
• D) Ensuring that the auditee owns the assets and is obligated to the extent of liabilities shown
• E) Verifying the proper valuation of assets,liabilities,income,and expenses

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Definitions:

Hypothetical-Deductive Thinking

A form of reasoning which involves developing hypotheses based on what might logically occur, followed by deducing logical, testable inferences, primarily seen in scientific and mathematical problem-solving, characteristic of formal operational thought in adolescence.

Deductive Reasoning

The logical process of reasoning from one or more statements (premises) to reach a logically certain conclusion, moving from generalities to specific instances.

Intuitive Thought

A cognitive process that relies on immediate, instinctive judgements rather than rational analysis.

Concrete Reasoning

Thinking based on physical objects and specific, tangible experiences rather than abstract concepts.