Which of the Following Would Normally Be Considered Sufficient to Demonstrate

question 79

Multiple Choice

Which of the following would normally be considered sufficient to demonstrate due care on the part of the auditor?

• A) The auditor had its work reviewed by another audit firm
• B) The auditor cites adherence to generally accepted auditing standards (GAAS)
• C) No omissions or misstatements have been found in the client's financial statements
• D) The auditor signs a statement expressing its unmodified opinion as to the fairness of the financial statements

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Definitions:

Expected Value

The predicted value of a variable, calculated as a sum of all possible values each multiplied by the probability of its occurrence.

Unit Of Measure

A standard quantity used in measuring and expressing the quantity of an element, substance, or phenomenon.

Variance

A measure of the dispersion or spread of a set of data points around their mean value; it quantifies the degree to which these points differ from the mean.

Distribution Plans

Strategies or policies set by a company or organization for delivering goods or services to customers, encompassing logistics, transportation, and channels of distribution.