Jerome audits the financial statements for a firm and discovers an error in the statement of cash flows. Which characteristic of data is NOT present for decision usefulness in the financial statements that Jerome audited?
A) Relevance
B) Materiality
C) Timeliness
D) Faithful representation

Question

Quizplus · Accepted Answer

Faithful representation is not present because the error in the statement of cash flows indicates that the financial statements may not accurately reflect the firm's financial position, thus lacking completeness, neutrality, and freedom from error, which are aspects of faithful representation.

Jerome Audits the Financial Statements for a Firm and Discovers