Because the Auditor's Main Responsibility Is to Express an Opinion

question 58

True/False

Because the auditor's main responsibility is to express an opinion on financial statements, which are composed of account balances, the primary emphasis by auditors when evaluating and testing internal control is on controls over account balances rather than controls over classes of transactions.

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Definitions:

Competitive Position

The standing or ranking of a company, product, or service in the marketplace compared to its competitors, based on factors like market share, strengths, and weaknesses.

Job Security

The confidence or probability that a person will maintain their employment without facing unemployment risks.

Securities Law

The area of law dealing with the regulation of securities (stocks, bonds, etc.), protecting investors, ensuring fair trading, and preventing fraud.

Mutual Acceptance

The initial stage in team development when members begin to accept and understand each other.