What does present fairly mean on the CPA exam?
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Present fairly. The overall judgment behind an opinion: the statements as a whole give a true picture within the applicable framework, beyond mere technical compliance with each rule.
Defined against AU-C 700.14.
Which CPA exam sections use present fairly?
Present fairly appears in the AUD section of the CPA exam.
Other terms defined against AU-C 700
- auditor's opinion: The conclusion the audit exists to produce.
- auditor's report: The document carrying the opinion, with its sections in a fixed order.
- unqualified opinion: The clean opinion: the statements are presented fairly in all material respects.
Related terms
- tolerable misstatement: A monetary amount set so that the risk of the actual misstatement in the population exceeding it is acceptably low.
- applicable financial reporting framework: The framework management adopts for the statements, such as GAAP or a special purpose framework.
- overall materiality: Materiality for the statements as a whole, set during planning.
- internal control over financial reporting: A process designed to provide reasonable assurance regarding the preparation of reliable financial statements.