The section of the annual report that establishes whether or not the financial statements are presented in conformity with accounting principles is called the:
A)Summary of industry segments
B)Financial section
C)Independent auditors' report
D)Management's discussion and analysis

Question

Quizplus · Accepted Answer

The section of the annual report that establishes whether or not the financial statements are presented in conformity with accounting principles is called the independent auditors' report, which is prepared by an external auditor who has examined the company's financial statements and attests to their accuracy and compliance with generally accepted accounting principles (GAAP). The other options listed (summary of industry segments, financial section, and management's discussion and analysis) are other sections that may be included in an annual report, but they do not specifically address the issue of accounting principles conformity.

The Section of the Annual Report That Establishes Whether or Not