The Auditor Has Considerable Responsibility for Notifying Users Whether the Financial

question 31

Multiple Choice

The auditor has considerable responsibility for notifying users whether the financial statements are fairly stated.This imposes upon the auditor a duty to

• A)be an insurer of the fairness in the statements.
• B)be a guarantor of the fairness in the statements.
• C)be equally responsible with management for the preparation of the financial statements.
• D)provide reasonable assurance that material misstatements will be detected.

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Definitions:

Unconditioned Response

An Unconditioned Response is an automatic, reflexive reaction to an unconditioned stimulus that occurs without prior learning or conditioning.

Product Line Extension

Involves adding new products to an existing product line to attract more customers or to capitalize on established reputations.

Corporate Repositioning

The strategic process of altering a company’s brand or image in the minds of consumers to achieve a defined business objective.

Family Branding

A marketing strategy where a group of related products is marketed under a single brand name.