In the Auditor's Responsibility Paragraph of the Audit Report, the Use

question 27

Multiple Choice

In the auditor's responsibility paragraph of the audit report, the use of the term 'reasonable assurance' is intended to indicate that:

• A) no misstatements exist in the financial statements.
• B) there is a possibility that material misstatements still exist in the financial statements.
• C) no material misstatements exist in the financial statements.
• D) there is a possibility that immaterial misstatements still exist in the financial statements.

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Definitions:

Correlation

A statistical measure that describes the extent to which two variables change together, but does not necessarily imply causation.

Mental Alertness

The state of being fully attentive and responsive to the environment or stimuli, characterizing good cognitive functioning.

The Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact.

Experimental Research

A method of research that tests a hypothesis through the manipulation of variables and controlled conditions to determine cause and effect.