Question : 81. The International Accounting Standards Board has worked to develop global : 1228418

81. The International Accounting Standards Board has worked to develop global accounting standards known as 
A. generally accepted accounting principles.
B. globally accepted financial standards.
C. international financial reporting standards.
D. worldwide financial standards.

82. An examination of the financial statements of a business to ensure that they conform to generally accepted accounting principles is called 
A. a certification.
B. an audit.
C. a verification.
D. a validation.

83. Which of the following best describes the purpose of an audit? 
A. To prove the accuracy of an entity’s financial statements.
B. To lend credibility to an entity’s financial statements.
C. To audit every transaction that an entity entered into.
D. To establish that a corporation’s stock is a sound investment.

84. Why does a company hire independent auditors? 
A. To guarantee the accuracy of both annual and quarterly financial statements.
B. To verify the accounting accuracy of every transaction entered into.
C. To report on the fairness of financial statement presentation.
D. The auditors are responsible for the content of the financial statements.

85. Why is the CPA’s role in performing audits important to our economic system? 
A. The auditors provide direct financial advice to potential investors.
B. The auditors have the primary responsibility for the information contained in financial statements.
C. The auditors issue reports on the accuracy of each financial transaction.
D. The audit of financial statements helps investors and others to know that they can rely on the information presented in the financial statements.

86. Which of the following is not one of the three steps taken by a corporation to assure the accuracy of its records? 
A. Implementing a system of internal controls.
B. The hiring of an independent auditor to report on the fairness of the financial statements.
C. The hiring of a financial analyst.
D. The formation of a committee made up of board of directors’ members to oversee the integrity of its safeguards utilized.

87. Which of the following groups has primary responsibility for the information contained in the financial statements? 
A. The company’s management
B. The company’s auditors
C. The company’s investors
D. The company’s internal auditors

88. Which private sector body was given the primary responsibility to determine detailed auditing standards? 
A. Financial Accounting Standards Board
B. Securities & Exchange Commission
C. Public Company Accounting Oversight Board
D. American Institute of Certified Public Accountants

89. Which group maintains the professional code of ethics to which CPAs must adhere? 
A. American Institute of Certified Public Accountants
B. Financial Accounting Standards Board
C. Securities & Exchange Commission
D. Public Company Accounting Oversight Board

90. Which of the following is a disadvantage of a corporation when compared to a partnership? 
A. The stockholders have limited liability.
B. The corporation is treated as a separate legal entity from the stockholders.
C. The corporation and its stockholders are subject to double taxation.
D. The corporation must account for the business’s transactions separate and apart from those of the owners.