Question

To present fairly in conformity with generally accepted accounting principles, the financial statements must: Multiple Choice Inform users of all matters that could materially affect a decision. Reflect transactions and events within a range of reasonable limits. Be considered preferable to the users of those financial statements. Be consistently applied.

Answer 1

Answer:

To present fairly in conformity with generally accepted accounting principles, the financial statement must reflect events and transactions within a range of reasonable limits.

Explanation:

An independent auditor's report consists of an opinion as to whether there's fairness in the financial statements presented and whether there's conformity in cash flows and generally accepted accounting principles.

The auditor should look at the requirements of the Securities and Exchange Commission for the firm that is being audited with respect to the accounting principles that is applicable to that particular company.

Without that framework, the auditor has no uniform standard to judge the cash flows, results of operations, and financial position of the company. The financial statement must show transactions within reasonable limits for fairness to be ascertained.