AU-C 330 Performing Audit Procedures in Response to Assessed Risks

question 54

Multiple Choice

AU-C 330 Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained and AS 2301 The Auditor's Responses to the Risks of Material Misstatement state that _______.

• A)auditors are required to perform substantive procedures for all relevant assertions that have been identified during the report issuance phase
• B)auditors are required to perform substantive procedures for all relevant assertions that have been identified during the risk assessment phase
• C)the auditors must always confer with the prior auditor before issuance of any audit report
• D)the accounting qualities of faithful representation and comparability are immaterial to the audit

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Definitions:

Strengths

The inherent capabilities or positive qualities that an individual possesses, which are beneficial for performing certain tasks or solving problems.

Organizational Customers

Entities, such as businesses, governments, or non-profits, that purchase goods or services from another organization for internal use, resale, or to support their operations.

Functional Departmentation

The process of dividing an organization into departments or units based on the functions or roles they perform.

Product Departmentation

An organizational structure method where the company is divided into departments based on product lines or categories.