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CMA Intermediate · Corporate Accounting and Auditing · Brief Introduction to Auditing Standards

Under SA 200, financial reporting frameworks that mainly encompass financial reporting standards established by an authorised or recognised standard-setting organisation for general purpose financial statements are often designed to achieve:

Such frameworks are often designed to achieve fair presentation. SA 200 explains that frameworks encompassing primarily the financial reporting standards established by an authorised or recognised organisation, for general purpose financial statements, typically aim at fair presentation rather than mere compliance.

  1. ACompliance only, with no fair presentation
  2. BFair presentationCorrect
  3. CTax minimisation
  4. DRegulatory capital adequacy

Explanation

SA 200 notes that some frameworks are fair presentation frameworks and others compliance frameworks. Frameworks made up primarily of standards set by an authorised or recognised organisation for general purpose statements are often designed to achieve fair presentation.

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