Concept introduction: Financial statements are the summarized result of the accounting for a particular period or at a particular date. These statements are usually prepared at the end of the accounting period.These statements include: Income statement, Balance sheet, Statement of owner’s equity and Cash flows statements.
An audit is an independent examination conducted to ensure that the financial statements are true and fair. Auditing standards are certain defined rules and regulation that provide guidance to the auditors for conducting the audit efficiently and effectively. The auditing standards are followed to fulfill the objective of audit.
To choose:The option that correctly states the parties involved in preparing and auditing financial statements.
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Auditing: A Risk Based-Approach to Conducting a Quality Audit
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