After the Auditor Has Completed All the Procedures, It Is

question 16

Multiple Choice

After the auditor has completed all the procedures, it is necessary to combine the information obtained to reach an overall conclusion as to whether the financial statements are fairly presented.This is a highly subjective process that relies heavily on:

• A) the auditor's professional judgement.
• B) generally accepted accounting principles.
• C) the Code of Ethics for Professional Accountants.
• D) generally accepted auditing standards.

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Definitions:

Implied Authority

The power of an agent to act on behalf of a principal, derived from the actions, words, or conduct of the principal rather than from an explicit written or spoken agreement.

Express Authority

Authority explicitly granted by a principal to an agent to perform specific acts or functions on the principal's behalf.

Apparent Authority

Apparent authority refers to a situation where a person appears to have the agent's authority to act on behalf of another (the principal) due to the principal's actions, leading third parties to believe in the existence of such authority.

Manager

An individual responsible for controlling or administering all or part of a company or similar organization.