The Final Phase of the Audit Involves _______

question 91

Multiple Choice

The final phase of the audit involves _______.

• A)drawing conclusions based upon the evidence gathered and arriving at an opinion about the fair presentation of the financial statements
• B)detailed testing of internal controls, transactions, account balances, and disclosures the auditors have determined to be at high risk of material misstatement
• C)planning the audit by assessing risk to reduce audit risk to an acceptably low level
• D)gaining an understanding of the client and identifying factors that may impact the risk of a material misstatement occurring in the financial statements

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Definitions:

Member Banks

Banks that are part of a central bank system like the Federal Reserve System in the United States and are subject to its regulations and have access to its services.

Secondary Reserves

Assets that can be quickly converted into cash without losing value but are not held as cash, used by banks to meet short-term needs.

Government Securities

Financial instruments issued by the government to borrow money from investors, which typically include bonds, bills, and notes.

High-risk Investments

Investments with a greater potential for loss or significant fluctuation in value, often offering the possibility of higher returns.