The objective of an audit is most likely to ...

Select one:

a. Provide absolute assurance about the accuracy or precision of the financial statements.

b. State that the financial statements are correct.

c. Enable an auditor to express an opinion on the fairness and reliability of the financial statements.

Common size statements are an input for which step in the financial statement analysis framework?

Select one:

a. Analyzing data

b. Collecting data

c. Processing data

Which of the following statements most likely describes the role of the income statement?

Select one:

a. It reports the financial position of the firm at a certain point in time.

b. It reports the company's cash inflows and outflows.

c. It reports the financial performance of the firm over a period of time.

In which of the following circumstances is an auditor least likely to issue an unqualified audit opinion?

Select one:

a. The auditor believes that the financial statements contain some exceptions to the accounting standards.

b. The auditor is reasonably sure that the financial statements are presented fairly.

c. The auditor believes that the financial statements are free from material errors.

Information about extraordinary items and other unusual or infrequent events is most likely found in ...

Select one:

a. Management Discussion & Analysis.

b. Financial statement footnotes.

c. Supplementary schedules.

Which of the following is least likely a regulatory authority?

Select one:

a. Securities and Exchange Commission (SEC)

b. European Securities Committee (ESC)

c. International Organization of Securities Commission (IOSCO)