When Assessing the Plausibility of the Financial Statements for a Review

question 2

Multiple Choice

When assessing the plausibility of the financial statements for a review engagement,the auditor will use which of the following criteria for auditing a small,privately held company?

• A)standards of efficiency and effectiveness
• B)the audit objectives associated with the audit of financial statements
• C)an acceptable reporting framework such as ASPE
• D)an enterprise risk-management framework to help detect fraud

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Definitions:

Readability

The ease with which text can be read and understood by its intended audience, often influenced by the choice of words, sentence structure, and design.

Proofreading Process

A detailed review of a document or text to correct grammatical errors, typos, and formatting issues, ensuring the final version is error-free.

Tone

The attitude or emotional character of a piece of writing, conversation, or other form of communication, influencing how it is perceived.

Readability

The ease with which a reader can understand or comprehend a written text.