Which of the Following Statements Is True About an Audit

question 72

Multiple Choice

Which of the following statements is true about an audit?

• A) Only an independent CPA must perform an audit.
• B) An auditor may use the accounting standards defined by his or her accounting firm to perform an audit.
• C) Verifying information from third parties is not a necessary step in an audit.
• D) The process of preparing a company's annual financial statements is called auditing.

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Definitions:

Frustrated Desires

Feelings of dissatisfaction or discontentment when one's goals or needs are not fulfilled or blocked.

Self-critical

A tendency to evaluate oneself harshly, focusing on shortcomings and failures rather than strengths and accomplishments.

Stress

A state of mental or emotional strain resulting from challenging or adverse situations.

Appraises Events

The process of evaluating or judging the significance, importance, or value of life events.