Under SAC 1, which entity is the least likely to have users dependent on general-purpose financial reports?
A) A small proprietary company whose shareholders also run the business.
B) A company which is listed on the stock exchange.
C) A company with a large number of shareholders.
D) A company which issues debentures to the public.

Question

Quizplus · Accepted Answer

A small proprietary company whose shareholders also run the business is the least likely to have users dependent on general-purpose financial reports because the shareholders are directly involved in managing the business and have access to information about its operations.

Under SAC 1, Which Entity Is the Least Likely to Have