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

---

Definitions:

Secondary Recycling

The process of reusing materials in a way different from their initial purpose, often involving breaking down and re-manufacturing.

Closed-Loop Recycling

A recycling system where materials are reused to make new products of the same type, minimizing waste and resource consumption.

Class C Hazard Material

A classification for hazardous materials that are primarily corrosive or reactive, posing risks to safety and health if not properly handled.

WHMIS

Workplace Hazardous Materials Information System; a Canadian system providing information on the safe use of hazardous materials at work through labels and safety data sheets.