Which One of the Following Statements Is Not an Accurate

question 27

Multiple Choice

Which one of the following statements is not an accurate description of the role of the external audit and the external auditors' report?

• A) Enables users of financial statements to place a high degree of confidence in the audited financial information.
• B) Assists shareholders in overcoming their information asymmetry problem.
• C) Gives shareholders reasonable assurance that the annual report and financial statements present a true and fair view of the results for the year.
• D) Bases the audit report on a 100% check of all the transactions undertaken during the year and a 100% check on the year end account balances.

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Definitions:

Frederick Taylor

A mechanical engineer who is considered the father of scientific management, focusing on improving economic efficiency and labor productivity through systematic study.

Organizational Behaviour

The study of both group and individual performance and activity within an organization, and how these behaviours can be improved through leadership and control.

Turnover Problem

Issues arising from a high rate of employees leaving an organization, which can lead to decreased productivity and increased training and recruiting costs.

Organizational Behaviour

A discipline that investigates the impact of individuals, groups, and structure on behavior within organizations for the purpose of applying such knowledge toward improving an organization's effectiveness.