What Is Required by Auditors According to ASA 210

question 32

Multiple Choice

What is required by auditors according to ASA 210?

• A) Document their understanding of the engagement in working papers.
• B) Communicate with the previous auditor.
• C) Obtain knowledge of the business.
• D) Use analytical procedures in the planning stage.

---

Definitions:

Profit

The financial gain obtained when the revenue generated from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Corporate Governance

A set of policies specifying the rights and responsibilities of the various participants in a corporation and spelling out the rules and procedures for making corporate decisions.

Public Securities Markets

Platforms where securities such as stocks and bonds are issued and traded openly, allowing investors to buy and sell them.

Practical Significance

The real-world importance or utility of an outcome or effect, beyond its statistical significance.