BOOK MCQ
An audit involves ascertaining the degree of correspondence between assertions and established criteria. In this case of a financial statement audit, which of the following is not a valid criterion? A. Philippine Standards on Auditing B. Philippine Financial Reporting Standards C. PFRS for small and medium-sized entities D. PFRS for small entities
A
An audit of the financial statements of JMV Corporation is being conducted by an external auditor. The external auditor is expected to A. Express an opinion as to the fairness of JMV's financial statements B. Express an opinion as to the attractiveness of JMV's financial statements C. Certify the correctness of JMV's financial statements D. Examine all evidence supporting JMV's financial statements
A
An auditor should recognize that the application of auditing procedures may produce evidential matter indicating the possibility of errors or fraud and therefore should a. plan and perform the engagement with an attitude of professional skepticism b. not depend on internal accounting control features that are designed to prevent or detect errors or fraud c. design audit tests to detect unrecorded transactions d. extend the work to audit most recorded transactions and records of an entity
A
An examination of part of an organization's procedures and methods for the purpose of evaluating efficiency and effectiveness is what type of audit? A. Operational audit B. Compliance audit C. Financial statement audit D. Production audit
A
In determining the primary responsibility of the external auditor for an audit of a company's financial statements, the auditor owes primary allegiance to a. stockholders, creditors and investing public b. the management of the audit client because the auditor is hired and paid by management c. the AASC, because it determines auditing standards and auditor's responsibility d. the audit committee of the audit client because that committee is responsible for coordinating and reviewing all audit activities within the company
A
Internal auditors' independence is enhanced when they report to A. Audit committee of the board of directors B. head of the finance department C. external auditors D. president of the company
A
Most of the independent auditor's work in formulating an opinion on the financial statements consists of A. Obtaining and examining evidence B. Examining cash transactions C. Comparing recorded accountability with assets D. Studying and evaluating internal control
A
Pronouncements issued by AASC may be in the form of I. Philippine Standards on Auditing II. Philippine Standards on Assurance Engagements III. Philippine Standards on Review Engagements IV. Philippine Standards on Related Services a. All yes b. Yes, no, yes, no c. yes, yes, yes, no d. no, yes, no, yes
A
The PSA issued by the AASC: a. Are interpretations of the generally accepted auditing standards b. Are the criteria used in evaluating the fair presentation of the FS c. Are interpretations of the GAAP d. Are optional guidelines which an auditor may choose to follow or not follow when conducting an audit
A
The assumption underlying an audit of financial statements is that they will be used by a. Different groups for different purposes. b. The general public in making investment decisions. c. The board of directors as basis of declaring cash dividends. d. The regulatory agencies to verify information that is relevant to their supervisory functions.
A
The generally accepted standards of reporting encompass all of the following except a. Consideration of an entity's internal control b. Consistent application of accounting principles c. Informative disclosures d. Conformity of financial statements with GAAP
A
The objective of the ordinary examination by the independent auditor is the expression of an opinion on A. the fairness of the financial statements B. accuracy of the financial statements C. accuracy of the annual report D. balance sheet and income statement
A
The reason an independent auditor gathers evidence is to A. form an opinion on the financial statements B. detect fraud C. evaluate management's performance D. evaluate the entity's internal control
A
The subject matter of any audit consists of A. Assertions about economic actions and events B. Economic data C. Financial statements D. Operating Data
A
What is the general character of the three generally accepted auditing standards classified as general standards? a. Criteria for competence, independence, and professional care of individuals performing the audit. b. Criteria of evidence gathering. c. Criteria for the content of the auditor's report on financial statements and related footnote disclosures. d. The requirements for the planning of the audit and supervision of assistant if any.
A
When auditing financial statements, the primary concern is with: A. Determining whether recorded information properly reflects the economic events that occurred during the accounting period B. Determining if fraud has occurred C. Determining if taxable income has been calculated correctly D. Analyzing the financial information to be sure that it complies with government requirements
A
Which of the following has the primary responsibility for the fairness of the representations made in the financial statements? a. Client's management b. Audit committee c. Independent auditor d. Board of Accountancy
A
Which of the following is more difficult to evaluate objectively A. Efficiency and effectiveness of operation B. Compliance with applicable government regulations C. Presentation of financial statements in accordance with the applicable financial reporting criteria D. All the given are equally difficult to evaluate objectively
A
Which of the following is one of the limitations of an audit? a. Nature of evidence obtained b. Inadequacy of the accounting records c. Confidentiality of information d. Scope limitations imposed by the entit
A
Which of the following would not represent one of the primary problems that would lead the users to demand for independent audit of a company's financial statements? a. The downsizing of business and financial markets. b. Management bias in preparing financial statements. c. The complexity of transactions affecting financial statements. d. The remoteness of the user to directly obtain financial information from the company.
A
While performing services for their clients, professional accountants have a duty to provide a level of care which is a. Reasonable b. Greater than average c. Superior d. Guaranteed to be free from error
A
An attitude that includes a questioning mind and a crucial assessment of audit evidence is referred to as a. due professional cre b. professional skepticims c. reasonable assurance d. supervision
B
Audit standards require the auditor to a. perform procedures designed to detect all instances of fraud b. provide reasonable assurance that the financial statements are not materially misstated c. issue an unmodified opinion only when the auditor is satisfied that no instances of fraud have occurred d. design the audit program to meet financial statement users' expectations concerning fraud
B
Auditing is based on the assumption that financial data are verifiable. Data are verifiable when 2 or more qualified individuals, a. working together, can prove, beyond doubt, the accuracy of the data b. working independently, each reach essentially similar conclusion c. working independently, can prove, beyond reasonable doubt, the truthfulness of the data d. working together, can agree upon the accuracy of the data
B
In financial statement audits, the audit process should be conducted in accordance with A. Audit program B. The Philippine Standards on Auditing C. The Philippine Accounting Standards D. The Philippine Financial Reporting Standards
B
Requirements for training, independence and due professional care are included in which group of the generally accepted auditing standards? a. Fieldwork b. General c. Reporting d. Quality control
B
The auditor communicates the results of his/ her work through the medium of A. Engagement letter B. Audit report C. Management letter D. Financial statements
B
The best statement of the responsibility of the auditor with respect to audited financial statements is a. The auditor's responsibility for a fair presentation of financial statements is limited only up to the date of the audit report. b. The auditor's responsibility is confined to the expression of opinion on the financial statements audited c. The responsibility over the financial statements rests with the management and the auditor assumes responsibility with respect to the notes of financial statements. d. The auditor is responsible only to his unmodified opinion but not for any other types of opinion.
B
The criteria for evaluation qualitative information vary. For example in the case of independent audit of financial statements by CPA firms, the criteria are usually the A. Philippine Standards on Auditing B. Philippine Financial Reporting Standards C. National Internal Revenue Code D. Regulation of the Securities and Exchange Commission
B
The level of assurance provided by an auditor when expressing an opinion on the financial statements is A. low B. reasonable C. limited D. none
B
The procedures deemed necessary in the circumstances to achieve the objective of a financial statement audit shall be determined by the a. Client management b. Independent auditor c. Internal Auditor d. Those charged with governance
B
The responsibility for the preparation of the financial statements and the accompanying notes belongs to A. auditor B. management C. both D. the management for the statement and the auditor for the notes
B
What is the general character of the three generally accepted auditing standards classified as general standards? a. Criteria for competence, independence, and professional care of individuals performing the audit. b. Criteria of evidence gathering. c. Criteria for the content of the auditor's report on financial statements and related footnote disclosures. d. The requirements for the planning of the audit and supervision of the assistant if any.
B
Which of the following best describes the reason why an independent auditor reports on financial statements? a. A management fraud may exist and it is more likely to be detected by independent auditors. b. Different interests may exist between the company preparing the statements and the persons using the statements. c. A misstatement of account balances may exist and is generally corrected as the result of the independent auditor's work. d. A poorly designed internal control system may be in existence.
B
Which of the following has the primary responsibility for the fairness of the representations made in the financial statements? a. Client's management b. Audit committee c. Independent auditor d. Board of Accountancy
B
Which of the following is not one of the general principles governing an audit of a financial statement? a. the auditor should plan and perform the audit with an attitude of professional skepticism b. the auditor should obtain sufficient appropriate evidence primarily through inquiry and analytical procedures to be able to draw reasonable conclusions c. the auditor should conduct the audit in accordance with PSA d. the auditor should comply with the Philippine Code of Professional Ethics
B
Which of the following is not one of the limitations of an audit? A. use of testing B. limitations imposed by client C. human error D. nature of evidence obtained
B
Which of the following pronouncements issued by AASC IS designed to resolve issues relating to PSAs? a. Philippine Auditing Practices Statements b. Interpretations c. Statements of Auditing Standards in the Philippines d. Generally Accepted Auditing Standards
B
Which of the following statements is correct concerning an auditor's responsibility regarding financial statements? a. making suggestions that are adopted about the form and content of an entity's financial statements impairs an auditor's independence b. an auditor may draft an entity's financial statements based on information from management's accounting system c. fair presentation of audited financial statements in conformity with PFRS is an implicit part of the auditor's responsibilities d. an auditor's responsibilities for audited financial statements are not confined to the expression of the auditor's opinion
B
Which of the following statements is not a distinction between external auditors and internal auditors? A. external auditors represent 3rd party users, whereas internal auditors report directly to management B. although external auditors strive for both validity and relevance of evidence, internal auditors are concerned almost exclusively with validity C. internal auditors are employees of the auditee, whereas independent auditors are independent contractors D. the internal auditor's span of coverage gives beyond financial auditing to encompass operational and performance auditing
B
Which of the following statements is true when the CPA has been engaged to do an audit engagement? a. the CPA firm is engaged and paid by the client; therefore, the firm has primary responsibility to be an advocate for the client b. the CPA firm is engaged and paid by the client, but the primary beneficiaries of the audit are the statement users c. should a situation arise when there is no convincing authoritative standard available, and there is a choice of actions which could impact client's financial statements either positively or negatively d. as long as CPA firms are competent, it is not required that they have remain unbiased
B
Which one of the following is not among the conditions that give rise to a demand by external users for independent audits of financial statements? a. Remoteness of users b. Complexity of making economic decisions c. Potential conflict of interest between users and preparers of the statements d. Consequence for making decisions
B
he fourth generally accepted auditing standard of reporting requires an auditor to render a report whenever an auditor's name is associated with financial statements. The overall purpose of the fourth standard of reporting is to require that reports: a. State that the examination of financial statements has been conducted in accordance with generally accepted auditing standards. b. Indicate the character of the auditor's examination and the degree of responsibility assumed by the auditor. c. Imply that the auditor is independent in mind as well as in appearance with respect to the financial statements under examination. d. Express whether the accounting principles used in preparing the financial statements have been applied consistently in the period under examination.
B
A typical objective of an operation audit is to determine whether an entity's A. Internal control structure is adequately operating as designed B. Operational information is in accordance with generally accepted accounting principles C. Specific operating units are functioning efficiently and effectively D. Financial statements present fairly the results of operations
C
According to PSA. because there are inherent limitations in an audit that affect the auditor's ability to detect material misstatements, the auditor is: a. a guarantor but not an insurer of the statements b. an insurer but not a guarantor of the statements c. neither a guarantor of the statements d. both a guarantor and an insurer of the FS
C
An audit designed to provide reasonable assurance of detecting violations of a specific provision of contracts or grant agreements would be called a(n) A. Performance Audit B. Management Audit C. Operational Audit D. Compliance Audit
C
An audit involves ascertaining the degree of correspondence between assertions and established criteria. IN the case of an audit of financial statements, which of the following would be a valid criterion? A. International Standards on Auditing B. Philippine Standards on Auditing C. Philippine Financial Reporting Standards D. Quality Control Standards
C
An audit of financial statement is conducted to determine if the A. Organizing is operating efficiently and effectively B. Client is following specific procedures or rules set down by some higher authority C. Overall financial information are stated in accordance with the applicable financial reporting framework D. Client's internal control is functioning as intended
C
An audit that involves obtaining and evaluating evidence about the efficiency and effectiveness of an entity's operating activities in relation to specific objectives is a(an) A. External audit B. Compliance audit C. Operational audit D. Financial statement audit
C
By providing high level of assurance on audit reports on financial statements, the auditor A. Guarantees the fair presentation of the financial statements B. confirms the accuracy of the financial statements C. enhances the credibility of the financial statements D. assures the reader that fraudulent activities of employees have been detected
C
In the auditing environment, failure to meet auditing standards is often A. an accepted practice. B. a suggestion of negligence. C. conclusive evidence of negligence. D. tantamount to criminal behavior.
C
Independent auditing can be best described as A. Professional activity that measures and communicates financial accounting data B. Subset of accounting C. Professional activity that attests to the fair presentations of the financial staements D. Regulatory activity that prevents the issuance of misleading financial information
C
Internal auditing is an independent function established within an organization to examine and evaluate its activities. To that end, internal auditing provides assistance to A. External auditors B. Stockholders C. Management and the Board of directors D. Government
C
One objective of an operational audit is to A. Determine whether the financial statements fairly present the entity's operations. B. determine if the auditee is in compliance with GAAP. C. make recommendations for improving performance. D. report on the entity's relative success in attaining profit maximization.
C
One of the conditions that gives rise to a demand for an external audit of financial statements is expertise. Which of the following best describes the meaning of expertise as used in this context? a. auditor usually rely on the work of an expert as a basis for evaluating some assertions embodied in the financial statements b. the readers of the financial statements must possess the necessary expertise to be able to understand the financial statements c. users usually lack the necessary expertise to verify the reliability of the financial information d. as experts, auditors expected to detect all material misstatements in the financial statements
C
Professional skepticism requires an auditor assume that management is a. honest, in the absence of fraud risk factors b. dishonest until completing the audit tests c. neither honest or dishonest d. offering reasonable assurance of honesty
C
Recording, classifying and summarizing economic events in a logical manner for the purpose of providing financial information for decision making is commonly called A. Finance B. Auditing C. Accounting D. Economics
C
The PSA can be described as a. providing very specific guidance about the specific activities an auditor must perform on each engagement b. similar to PFRS c. defining the minimum standards of performance for an auditor d. provide assurance that an auditor will not issue an inappropriate audit opinion
C
The general standards of the generally accepted auditing standards include a requirement that a. The fieldwork to be adequately planned b. The auditor's report to state whether the financial statements are presented In conformity with PFRS. c. Due professional care be exercised by the auditor. d. The auditor to obtain sufficient, competent evidential matter.
C
The independent audit is important to readers of financial statement because it A. determines the future stewardship of the management of the company whose financial statements are audited B. measures and communicates financial and business data involved in financial statements C. Involves the objective examination of and reporting on management prepared statements. D. reports on the accuracy of all information in the financial statements.
C
The primary reason for an audit by an external audit firm is A. to satisfy governmental regulatory requirements B. to guarantee the there are no misstatements in the financial statements C. to provide increased assurance to users to the fairness of the financial statements D. to ensure that any fraud will be discovered
C
The third general standards states that due care is to be exercised in the performance of an audit. This standards is ordinarily interpreted to require a. thorough review of the existing safeguards over access to assets and records b. limited review of the indication of employee fraud and illegal acts c. objective review of the adequacy of the technical training and proficiency of firm personnel d. critical review of the judgement exercised at every level of supervision
C
The third generally accepted standard of reporting in auditing refers to a. Whether financial statements are presented in conformity with GAAP. b. Whether accounting principles lave been consistently observed c. Adequacy of disclosures. d. An expression of opinion on the financial statements taken as a whole.
C
Theoretically, it is possible to provide infinite range of assurance from a very low level assurance to an absolute level of assurance. In practice, the professional accountants cannot provide absolute assurance because of the following except: A. inherent limitations of audit that cannot be eliminated B. auditor employs testing process when performing audit procedures C. auditor usually lacks the expertise necessary to verify the financial statements D. auditor uses professional judgement in gathering evidence and drawing conclusions based on that evidence
C
Upon completion of a financial statement audit, the auditor has a. No assurance that the financial statements are fairly presented b. absolute assurance that the financial statements are fairly presented c. reasonable assurance that all material errors and fraud affecting the financial statements have been detected d. a low level of assurance that all material errors and irregularities have been found
C
Which of the following best describes operational audit? A. It attempts of verifying the fair presentation of a company's results of operations B. It concentrates on implementing financial and accounting control in a newly organized company C. It concentrates on seeking out aspects of operations in which waste would be reduced by the introduction of controls D. It requires a constant review of the administrative controls by internal auditors as they relate to the operations of the company
C
Which of the following best describes the function of AASC? a. to establish and promulgate GAAP b. to investigate violations of the Accountancy law c. to promulgate auditing standards, practices and procedures that shall be generally accepted by the accounting profession in the Philippines d. to determine the minimum requirements for admission in the accounting profession
C
Which of the following best describes what is meant by GAAS? a. audit objectives generally determined on audit engagements b. acts to be performed by the auditor c. measures of the quality of the auditor's performance d. procedures to be used to gather evidence to support financial statements
C
Which of the following is most likely to be unique to the audit work of CPAs a compared to work performed by practitioners of other profession a. Due professional care b. Competence c. Independence d. Complex body of knowledge
C
Which of the following is not one of the major assumptions when auditing financial statements? a. the data in the financial statements are verifiable b. compliance to PFRS results in fair presentation of financial statements c. effective internal control system contributes little to the reliability of financial statements d. the auditor should be independent
C
Which of the following is not one of the major differences between financial and operational auditing? A. The financial audit is oriented in the past, but an operational audit concerns performance for the future B. The financial audit report has widespread distribution, but the operational audit report has limited distribution C. Financial audit deal with the information on the financial statements, but operational audits are concerned with the information in the ledgers and journals D. Financial audits are limited to matters that directly affect the fairness of financial statement presentation, but operational audits cover any aspect of efficiency and effectiveness
C
Which of the following is one of the limitations of an audit? A. possibility that management may prevent the auditor from performing the necessary audit procedures B. the likelihood that the auditor may not be able to detect material misstatements in the financial statements because the auditor is engaged inly after year-end C. the fact that most audit evidence is persuasive than conclusive in nature D. the risk that the auditor may not possess the training and proficiency required by the engagement
C
Which of the following statements does not properly describe an element of the theoretical framework of auditing? a. the data to be audited can be verified b. short-term conflicts may exist between managers who prepare the data and auditors who examine the data c. auditors act on behalf of the management d. audit benefits the public
C
Which of the following types of audit uses laws and regulations as its criteria? A. Operational Audit B. Financial Audits C. Compliance Audit D. Performance Audit
C
Which one of the following is an example of management expectations that independent auditors? a. An active participant in management decision making b. An internal source expertise of financial and other matters. c. An expert providing written communication as the product of the engagement. d. Individuals who perform day-to-day accounting functions on behalf of the company.
C
hich of the following is correct about Philippine Auditing Practices Statements (PAPS)? a. These are issued to resolve issues relating to PSAs. b. These statements are intended to have the authority of PSAs. c. These statements are issued to provide practical assistance to auditors in implementing PSAs or to promote good practice. d. These statements are forms of interpretations issued by AASC.
C
An auditor does not have to comply with a specific requirement of the PSA if the auditor believes that: a. amount is significant b. requirement of the PSA is impractical to perform c. Requirement of the PSA is impossible to perform d. any of the given 3 choices is correct
D
Auditors accumulate evidence to A. defend themselves in the event of a lawsuit B. justify the conclusion they have otherwise reached C. satisfy the requirements of the SEC D. enable them to reach conclusions about the fairness of the financial statements and issue an appropriate audit report
D
The auditor is not liable to his client for a. Negligence b. Fraud c. Dishonesty d. Errors in application judgment
D
The fourth reporting standard requires the auditor's report to contain an expression of opinion regarding the financial statements taken as a whole, or an assertion to the effect that an opinion cannot be expressed. The objective of the fourth standard is to prevent a. An auditor from reporting on one basic financial statement and not on the others. b. An auditor from expressing different opinions on each of the basic financial statements. c. Management from reducing its final responsibility for the basic financial statements d. Misinterpretations regarding the degree of responsibility the auditor is assuming
D
The need for independent audits of financial statements can be attributed to all of the following conditions except: a. remoteness b. consequence c. complexity of subject matter d. vality
D
The objective of the consistency standard is to provide assurance that a. There are no variations in the format and presentation of financial statements. b. Substantially different transactions and events are not accounted for on an identical basis. c. The auditor is consulted before material changes are made to the application of accounting principles. d. The comparability of financial statements between periods is not materially affected by changes in accounting principles without disclosure.
D
The overall objective of internal auditing is to A. Attest to the efficiency with which resources are employed B. Ascertain that controls are costs justified C. Provide assurance that financial data have been accurately recorded D> Assists memebers of the organization in the effective discharge of their responsibilities
D
The primary purpose of an independent financial statement audit is to A. provide a basis for assessing management's performance B. comply with government regulatory requirements C. assure management that the financial statements are unbiased and free from material error D. provide users with an unbiased opinion about the fairness of information reported in the financial statements
D
The standard of due audit care requires the auditor to a. Make perfect judgment decisions in all cases b. Ensure that the financial statements are free from error c. Possess skills clearly above the average for the profession d. Apply judgments in a conscientious manner, carefully weighing the relevant factors before reaching a decision.
D
The third standard of field work states that sufficient competent evidential matter may in part be obtained through the following methods except a. Inspection b. Observation c. Confirmation d. Reconciliation
D
The trait that distinguishes auditors from accountants is the A. Auditor's ability to interpret accounting standards B. Auditor's education beyond the Bachelor's degree C. Auditor's continuing professional development D. Auditor's accumulation and interpretation of evidence related to the company's financial statements
D
There are-four conditions that give rise to the need for independent audits of financial statements. One of these conditions is consequence. In this context, consequence means that the: a. Users of the statements may not fully understand the consequences of their actions. b. Auditor must anticipate all possible consequences of the report issued. c. Impact of using different accounting methods may not be fully understood by the users of the statements. d. Financial statements are used for important decisions.
D
Under GAAS, which of the following reflects a concept from the general group? a. The confirmation of accounts receivable. b. Completing an internal control questionnaire. c. The initial planning of the audit with the audit partner, manager senior, staff, and client personnel. d. The assignment of audit personnel to an engagement when they have no financial interest.
D
When performing an operational audit, the internal audit team must first determine that A. Financial audit has been performed by an independent auditor B. Financial audit has been performed by an internal auditor C. Review was performed by either an independent or an internal auditor D. Specific criteria are developed to define effectiveness
D
Which of the following does not pertain to the standards of fieldwork? a. Adequate planning and supervision. b. Obtaining sufficient competent evidential matter. c. Proper study and evaluation of internal control as a basis for reliance thereon. d. Technical training and proficiency.
D
Which of the following groups could not be involved in an operational audit? A. external auditors B. internal auditors C. government auditors D. All of the above could be involved
D
Which of the following is incorrect about responsibility for financial statements? a. Management is responsible for fair presentation of the financial statements. b. Auditor is responsible for expressing an opinion on the financial statements. c. Audit of financial statements does not reduce management's responsibility. d. Fair presentation of financial statements is an implicit part of the auditor's responsibility.
D
Which of the following is not one of the reasons why auditors cannot provide absolute assurance when auditing financial statements? a. the auditor commonly examines a sample, rather than the entire population of transactions b. the nature of the financial reporting frameworks usually requires the use of complex estimates which involve uncertainty c. the fact that most audit evidence is only persuasive and not conclusive in nature d. the auditors are usually prevented by the client from verifying certain accounts in the financial statements
D
Which of the following statement does not describe a condition that creates a demand for auditing? a. Conflict between an information preparer and a user can result in biased information. b. Information can have substantial economic consequences for a decision-maker c. Expertise is often required for information preparation and verification d. Users can directly assess the quality of information.
D
Which of the following statements about independent financial statement audit is correct? A. The audit of financial statements relieves management of its responsibilities for the financial statements B. An audit is designed to provide limited assurance that the financial statements taken as a whole are free from material misstatement C. The procedures required to conduct an audit in accordance with PSAs shroud be determined by the client who engaged the services of the auditor D. The auditor's opinion is not an assurance as to the future viability of the entity as well as the effectiveness and efficiency with which management has conducted the affairs of the entity
D
Which of the following statements about independent financial statement audit is incorrect? a. Scope of the audit refers to audit procedures deemed necessary in the circumstances to achieve the objective of the audit. b. The auditor's opinion enhances the credibility of the financial statements. c. The phrase used to express the auditor's opinion is "present fairly, in all material respects". d. The risk that the auditor will fail to uncover material misstatement is eliminated when the auditor conducts the audit in accordance with PSAs.
D
Which of the following statements does not properly describe a limitation of an audit? A. many audit conclusions are made on the basis of examining a sample of evidence B. some evidence supporting peso representation in the financial statements must be obtained by oral or written representation of management C. fatigue can cause auditors to overlook pertinent evidence D. many financial statement assertions cannot be audited
D
Which of the following statements does not properly describe a limitation of an audit? a. Many audit conclusions are made on the basis of examining a sample of evidence. b. The work undertaken by the auditor is permeated by judgment. c. The auditor might misinterpret the evidence obtained. d. Most of the items in the financial statements do not have supporting evidence.
D
Which of the following types of auditing are performed most commonly by CPA's on contractual basis A. Internal auditing B. Income tax auditing C. Government auditing D. External Auditing
D