Which of the Following Is True in the Case of an Auditor

question 135

Multiple Choice

Which of the following is true in the case of an auditor communicating with a continuing client in the beginning of a contract?

• A)A new engagement letter is not needed if the terms of engagement remain unchanged
• B)No reminder of the engagement terms is needed if no revisions are made to the engagement letter
• C)No reminder of the engagement terms is needed if a continuance decision is made.
• D)No engagement letter is needed in all cases of continuance decision.

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Definitions:

Classical Approach

A method or theory in economics and political philosophy centered around free markets, competition, and limited government intervention.

Relative Frequency Approach

A method of estimating probabilities based on the proportion of observed occurrences of an event relative to the total number of trials.

Subjective Approach

A method of decision making or analysis that is based on personal judgment, opinions, or preferences rather than objective data.

Simple Event

An event consisting of only one outcome in a probability experiment.