In an Audit of Financial Statements of a Non-Public Company

question 41

Multiple Choice

In an audit of financial statements of a non-public company in accordance with generally accepted auditing standards, an auditor is required to:

• A)document the auditor's understanding of the entity's internal control.
• B)search for significant deficiencies in the operation of the internal controls.
• C)perform tests of controls to evaluate the effectiveness of the entity's accounting system.
• D)determine whether control activities are operating effectively to prevent or detect material misstatements.

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Definitions:

Effect Sizes

Statistical measures that quantify the magnitude of a phenomenon, showing the extent of a relationship between variables in quantitative research.

Literature Reviews

Comprehensive surveys of existing research and publications on a specific topic or research question.

External Validity

The extent to which study findings can be generalized to settings and groups beyond the study conditions.

Meta-Analyses

A statistical technique that combines the results of multiple scientific studies to arrive at a comprehensive conclusion.