What Is an Auditor Required to Do with Respect to a Client's

question 23

Multiple Choice

What is an auditor required to do with respect to a client's financial reporting framework?

• A)assess whether the framework selected by management is suitable
• B)select an applicable framework for use with the financial statements
• C)make sure that ASPE or ASNPO are in use for publicly listed companies
• D)select the accounting principles to be used as part of the reporting framework

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Definitions:

Duress

A scenario in which an individual engages in an action due to being subjected to force, intimidation, or other forms of coercion.

Coercion

The act of compelling a party to act in an involuntary manner by use of threats, force, or pressure.

Contract Force

The legal binding power of a contract that obliges the parties involved to fulfill their respective duties as outlined.

Ratification

The act of formally approving or confirming a decision or agreement, making it officially valid.