Which of the Following Statements Is Correct Concerning an Auditor's

question 946

Multiple Choice

Which of the following statements is correct concerning an auditor's use of the work of a specialist?

• A) The auditor need not obtain an understanding of the methods and assumptions used by the specialist.
• B) The auditor may not use the work of a specialist in matters material to the fair presentation of the financial statements.
• C) The reasonableness of the specialist's assumptions and their applications are strictly the auditor's responsibility.
• D) The work of a specialist who has a contractual relationship with the client may be acceptable under certain circumstances.

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Definitions:

Tukey's Multiple Comparison

A statistical method used to find which means among a set of means differ from the rest after conducting an ANOVA test.

Fisher's LSD

A statistical method used to compare means while controlling for familywise error rate in the context of an ANOVA.

Pooled Variance Estimator

An estimate of variance that combines the variances from two or more samples, assuming that they come from populations with the same variance.

MSE from ANOVA

Mean Square Error derived from Analysis of Variance, indicating the average of the squares of the deviations of observations from their group means.