The Reason Auditors Accumulate Evidence Is To

question 5

Multiple Choice

The reason auditors accumulate evidence is to:

• A) satisfy the requirements of the Corporations Act.
• B) enable them to reach conclusions about the fairness of the financial statements and issue an appropriate audit report.
• C) defend themselves in the event of a lawsuit.
• D) justify the conclusions they have otherwise reached.

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Definitions:

Animals

Refers to multicellular, eukaryotic organisms in the kingdom Animalia that typically have the ability to move and consume organic material.

Marginal Analysis

An examination of the additional benefits of an activity compared to the additional costs incurred by that same activity.

Insignificant Benefits

Benefits or advantages that are too small or unimportant to make a noticeable difference.

Opportunity Costs

The advantages or gains a person, investor, or company forgoes by selecting one option instead of another.