In the First Audit of a New Client, an Auditor

question 561

Multiple Choice

In the first audit of a new client, an auditor was able to extend auditing procedures to gather sufficient evidence about consistency. Under these circumstances, the auditor should:

• A) Not report on the client's income statement.
• B) Not refer to consistency in the auditor's report.
• C) State that the consistency standard does not apply.
• D) State that the accounting principles have been applied consistently.

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Definitions:

Organ Systems

Groups of organs working together to perform complex functions necessary for life, such as the digestive or respiratory systems.

Life Expectancy

The average period that an individual is expected to live, often calculated based on statistical averages of age, gender, and other factors in a given population.

Gamma Rays

High-energy electromagnetic waves emitted from atomic nuclei during radioactive decay, with applications in medical treatment and imaging.

Radiation

The emission of energy as electromagnetic waves or as moving subatomic particles, especially high-energy particles that cause ionization.