The auditor's objective is to seek ________ that no material error exists in the information audited

Refer to the income statement above. Luther's net profit margin for the year ending December 31, 2005 is closest to ________

Luther Corporation Consolidated Income Statement Year ended December 31 (in $millions) 2006 2005 Total sales 610.1 569.6 Cost of sales -500.2 -389.2 Gross profit 109.9 180.4 Selling, general, and administrative expenses -40.5 -39.6 Research and development -24.6 -21.6 Depreciation and amortization -3.6 -3.3 Operating income 41.2 115.9 Other income -- -- Earnings before interest and taxes (EBIT) 41.2 115.9 Interest income (expense) -25.1 -14.2 Pretax income 16.1 101.7 Taxes -5.5 -35.595 Net income 10.6 66.105 Price per share $16 $15 Sharing outstanding (millions) 10.2 8.0 Stock options outstanding (millions) 0.3 0.2 Stockholders' Equity 126.6 63.6 Total Liabilities and Stockholders' Equity 533.1 386.7 A) 11.61% B) 5.80% C) 9.28% D) 13.93%

Significant noncash transactions are not reported on the statement of cash flows, but either in a separate schedule or in a note to the financial statements

a. True b. False Indicate whether the statement is true or false