In Addition to the Requirements of ASA and the ISA

question 7

Multiple Choice

In addition to the requirements of ASA and the ISA standards, the Corporations Act also prescribes the auditor's reporting duties. Which of the following does not constitute one of those duties?

• A) forming an opinion on whether the financial statements are presented fairly.
• B) forming an opinion as to whether financial records have been kept to enable the preparation and audit of the financial statements
• C) forming an opinion that all information, explanation and assistance necessary for the conduct of the audit have been provided.
• D) forming an opinion that the records and registers have been kept as required by law

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Definitions:

Cobb-Douglas

A mathematical function used in economic models to represent the relationship between two or more inputs and the resulting level of output.

Production Function

A mathematical representation of the relationship between inputs used in production and the output generated from those inputs.

Capital Employed

The total amount of capital used for the acquisition of profits by a firm or project, including the value of all assets employed in a business.

Production Function

A formula that specifies the output generated by a firm from varying combinations of factor inputs.