The Existence of Audit Risk Is Recognized by the Statement

question 38

Multiple Choice

The existence of audit risk is recognized by the statement in the auditor's standard report that the:

• A)auditor is responsible for expressing an opinion on the financial statements, which are the responsibility of management.
• B)financial statements are presented fairly, in all material respects, in conformity with applicable financial reporting framework.
• C)audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
• D)auditor obtains reasonable assurance about whether the financial statements are free of material misstatement.

---

Definitions:

Context-Specific Actions

Actions or decisions made based on the particular details and circumstances of a given situation, often tailored to meet specific challenges or opportunities.

Stakeholders' Expectations

The anticipations and demands that stakeholders (such as shareholders, employees, customers, and communities) have from an organization.

CSR

Corporate Social Responsibility, a business model where companies integrate social and environmental concerns in their operations and interactions with stakeholders.

Conscious Marketing

A marketing approach that prioritizes ethical considerations, societal well-being, and environmental sustainability alongside business goals.