When Assessing the Plausibility of the Financial Statements for a Review

question 2

Multiple Choice

When assessing the plausibility of the financial statements for a review engagement,the auditor will use which of the following criteria for auditing a small,privately held company?

• A)standards of efficiency and effectiveness
• B)the audit objectives associated with the audit of financial statements
• C)an acceptable reporting framework such as ASPE
• D)an enterprise risk-management framework to help detect fraud

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Definitions:

Apraxic Patients

Individuals who suffer from apraxia, a motor disorder caused by damage to the brain (in areas involved in planning the movements necessary to produce sounds or gestures) that results in difficulty with the motor planning to perform tasks or movements when asked, despite understanding the request and having the physical ability to perform the actions.

Motor Function

Activities related to the movement of muscles in the body, including actions that are both voluntary and reflexive.

Automatic Routines

Repetitive actions or behaviors that are performed with little to no conscious thought, often becoming habitual.

Monozygotic Twins

are twins that originate from the splitting of a single fertilized egg, making them genetically identical.