There Are Several Reasons Why the Auditor Is Responsible for Reasonable

question 25

Multiple Choice

There are several reasons why the auditor is responsible for reasonable but not absolute assurance.One of them is that:

• A) fraudulently prepared financial statements are often extremely difficult, but not impossible, for the auditor to detect.
• B) accounting presentations contain complex estimates that can be convincing.
• C) most audit evidence results from testing a sample of a population, and sampling involves minimal risk.
• D) audit testing and the evaluation of test results require significant auditor judgement, and auditors can make errors in judgement.

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Definitions:

Southerners

Individuals from the southern region of a country; typically used in the United States to describe people from the states that were part of the Confederacy.

Party Politics

The competition between political parties for power and control within a governmental setup, influencing policy-making and the political landscape.

Newspaper

A printed or digital publication that provides news, information, and commentary on current events on a regular or semi-regular basis.

Town Criers

Historical figures who made public announcements in the streets, often employed by the town or city authorities before the advent of mass communications.