In the audit of historical financial statements, management asserts that the financial statements are fairly stated in accordance with what standards?
A) regulatory accounting principles
B) applicable international accounting standards
C) applicable U.S. accounting standards
D) B and C

Question

Quizplus · Accepted Answer

In the audit of historical financial statements, management asserts that the financial statements are fairly stated in accordance with applicable international accounting standards (Option B) or applicable U.S. accounting standards (Option C), depending on the jurisdiction of the company. While regulatory accounting principles may also be used in certain industries, they are not a widely recognized set of accounting standards and are therefore not a likely choice as an answer option. Therefore, the best choice is D, which includes both B and C as correct answers.

In the Audit of Historical Financial Statements, Management Asserts That