Which of the following situations violates the concept of reliability?Relevance is the capacity of information to make difference in decision by helping users from predictions about outcome of past, present and future events, or confirm/correct prior expectationsThe quality of reliability assures readers that the financial information is free from bias and faithfully represents what it purports to show, including adequate disclosure of significant informationUnder the IASB Framework for the Preparation and presentation of financial statements, conservatism is not a concept that is recognized as a qualitative objectiveI and II onlyII and III onlyI and III onlyI, II and III

Which of the following situations violates the concept of reliability? Correct Answer is :- 1,2 and…

Answered: concept of reliability

10th Edition

ISBN:9781305080577

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

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

Chapter1: Auditing: Integral To The Economy

Section: Chapter Questions

Problem 16MCQ

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Question

Which of the following situations violates the concept of reliability?
1. Relevance is the capacity of information to make difference in decision by helping users from predictions about outcome of past, present and future events, or confirm/correct prior expectations
2. The quality of reliability assures readers that the financial information is free from bias and faithfully represents what it purports to show, including adequate disclosure of significant information
3. Under the IASB Framework for the Preparation and presentation of financial statements, conservatism is not a concept that is recognized as a qualitative objective