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CSEET · Fundamentals of Accounting · Basic Concepts and Principles of Accounting

Which of the following is listed in the Framework as a purpose of the Framework itself?

One stated purpose of the ICAI Framework is to assist auditors in forming an opinion as to whether financial statements conform with Accounting Standards. It supports preparers, the Accounting Standards Board and users, but does not replace standards or deal with taxation.

  1. ATo assist auditors in forming an opinion on whether financial statements conform with Accounting StandardsCorrect
  2. BTo fix the rates of income tax for businesses
  3. CTo guarantee that every enterprise earns a profit
  4. DTo replace the need for any Accounting Standard

Explanation

Paragraph 1 lists assisting auditors in forming an opinion on conformity with Accounting Standards as one purpose. The Framework supports Accounting Standards and does not replace them. It has nothing to do with tax rates or guaranteeing profit.

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