Which of the Following Does the Public Expect of Auditors

question 66

Multiple Choice

Which of the following does the public expect of auditors?

• A) Understand and enforce principles that best portray the spirit of FASB concepts.
• B) Be neutral to preparers and users of financial information.
• C) Recognize that the investing public is the primary user of audit services.
• D) Take responsibility for the discovery of fraud.
• E) All of the above are expectations of the public.

---

Definitions:

Control Test

A criterion used to determine whether an entity has control over another entity, which could influence consolidation decisions.

Asset Recognition

The criteria and process for including items as assets in the financial statements.

Line-by-Line Method

A method of accounting where the revenues and expenses of subsidiaries are added line-by-line to those of the parent company for consolidated financial reporting.

Jointly Controlled Operations

Business activities that are controlled and managed by two or more parties under a joint agreement, sharing both the benefits and obligations.