Choose the letter of the correct answer. 3.The following statements are correct, except:An entity shall prepare all its financial statements using the .accrual basis of accounting.а.An entity need not provide a specific disclosure required by PFRS/IFRS if the information is not material.b.С.An entity shall not offset assets and liabilities or income andexpenses, unless required or permitted by PFRS/IFRS.d. When an entity departs from a requirement of PFRS/IFRS, it shalldisclose that it has complied with applicable PFRS/IFRS, exceptthat it has departed from a particular requirement to achieve a fairpresentation.

-> As per IAS 1 if the information is immaterial it is not needed to provide a disclosure. So…

3. The following stateme il, except. An entity shall prepare all its financial statements using the accrual basis of accounting. а. b. An entity need not provide a specific disclosure required by PFRS/ IFRS if the information is not material. An entity shall not offset assets and liabilities or income and С. expenses, unless required or permitted by PFRS/IFRS. d. When an entity departs from a requirement of PFRS/IFRS, it shall disclose that it has complied with applicable PFRS/IFRS, except that it has departed from a particular requirement to achieve a fair presentation.

3. The following stateme il, except. An entity shall prepare all its financial statements using the accrual basis of accounting. а. b. An entity need not provide a specific disclosure required by PFRS/ IFRS if the information is not material. An entity shall not offset assets and liabilities or income and С. expenses, unless required or permitted by PFRS/IFRS. d. When an entity departs from a requirement of PFRS/IFRS, it shall disclose that it has complied with applicable PFRS/IFRS, except that it has departed from a particular requirement to achieve a fair presentation.

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process

Section: Chapter Questions

Problem 34MCQ: Which management assertion addresses whether the components of the financial statements arc properly...

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Similar questions

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1. These provide narrative description or disaggregation of items disclosed in the financial statements and information about items that do not qualify for recognition.a. Notes to Financial Statementsb. Accounting Policiesc. Nonfinancial Reportsd. Disclosures 2. Which is not a purpose of notes to financial statements? a. To present information about the basis of preparation of the financial statements and the specific accounting policies used.b. To disclose the information required by PFRS that is not presented elsewhere in the financial statements.c. To provide additional information which is not presented in the financial statements but that is necessary for a fair presentation.d. To provide information about the financial position, financial performance and cash flows of an entity that is useful to a wide range of users in making economic decisions. 3. Indicate the proper order of presenting the notes to financial statements.I. Statement of compliance with PFRSII. Other disclosures,…
14. Which of the following statement is not correct as to why an entity must make adjusting entries? A. To prepare reliable income statement and statement of financial position B. To ensure that the revenue recognition and expense recognition principles are followed C. To prepare for closing and reversing entries D. To account for accruals and deferrals
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