ISM Exam CPSM1 Topic 1 Question 103 Discussion

Actual exam question for ISM's CPSM1 exam

Question #: 103
Topic #: 1

The purpose of _______________ is to determine whether or not an organization'sfinancial statements are prepared in accordance with generally accepted accountingprinciples.

AOperational audit

BPrincipal audit

CFinancial audit

DFunctional audit

Show Suggested Answer

Suggested Answer: C

by Steffanie at Nov 14, 2024, 11:26 PM

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Jaime

2 months ago

Option C is the only one that makes sense. Gotta love those financial audits - keeping accountants on their toes since the dawn of time!

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Mariann

2 months ago

I'm going with C. Financial audits are the foundation of ensuring financial statements are accurate and in line with accounting standards. Easy peasy!

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Mammie

1 months ago

I always thought financial audits were just about checking numbers, but it's good to know they serve a larger purpose.

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Gilberto

2 months ago

Yes, financial audits are crucial for maintaining transparency and trust in financial reporting.

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Alethea

2 months ago

I think financial audits are more about compliance with accounting principles rather than operational efficiency.

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Markus

2 months ago

Yes, financial audits provide stakeholders with confidence in the organization's financial health.

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Darrin

2 months ago

I agree, financial audits are essential for ensuring accuracy in financial statements.

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Remona

2 months ago

I agree, financial audits are essential for ensuring transparency and accuracy in financial reporting.

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Lashawna

3 months ago

Haha, I bet the person who wrote option B 'Principal audit' was just trying to trip us up! Nice try, but C is the clear winner here.

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Wynell

1 months ago

It's always best to stick with the obvious answer, option C 'Financial audit'.

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Hannah

2 months ago

I always go with the safe choice, option C 'Financial audit'.

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Eulah

2 months ago

Yeah, option B 'Principal audit' seems like a distraction.

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Samuel

2 months ago

I agree, option C 'Financial audit' is definitely the correct choice.

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Elmira

3 months ago

Hmm, I'm torn between B and C, but I think C is the way to go. Financial audits are the bread and butter of accounting, you know?

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Audry

2 months ago

I think C is the correct choice, it focuses on the accuracy and reliability of financial statements.

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Timothy

2 months ago

Yes, financial audits are crucial for maintaining transparency and accountability.

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Alline

3 months ago

I agree, financial audits are essential for ensuring accuracy in financial reporting.

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Katie

3 months ago

Definitely C. Financial audit is the correct answer here. I can't believe anyone would confuse this with an operational or functional audit!

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Keva

2 months ago

Operational and functional audits focus on different aspects of the organization.

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Casie

2 months ago

Yes, financial audit is crucial for maintaining transparency and accountability.

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Thea

2 months ago

It's important to ensure that the organization's financial statements are accurate.

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Selma

3 months ago

I agree, financial audit is specifically for checking financial statements.

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Elfriede

3 months ago

I believe operational audit focuses more on efficiency and effectiveness, not on financial accuracy.

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Alyce

3 months ago

I agree with Deeann, financial audit is crucial for maintaining transparency and trust in the organization.

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Deeann

3 months ago

I think the purpose of financial audit is to ensure accuracy in financial statements.

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