Which of the Following Is not an Underlying Premise of an Audit

question 19

Multiple Choice

Which of the following is not an underlying premise of an audit?

• A)Management must provide the auditor with all information relevant to the preparation and fair presentation of the financial statements.
• B)Management and the auditors have responsibility for the preparation of financial statements in accordance with the applicable financial reporting framework.
• C)Where appropriate,the auditor may obtain information from those charged with governance.
• D)The auditors should be provided unrestricted access to those within the entity from whom the auditor determines it necessary to obtain audit evidence.

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Definitions:

Capital Per Worker

Capital per worker is a ratio that measures the amount of capital assets (such as equipment and machinery) available for each worker, often used as an indicator of labor productivity.

Output Per Worker

The average quantity of goods and services produced per employee in a given time period.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often measured by GDP growth.

Simon Kuznets

A Ukrainian-American economist who made significant contributions to the study of economic growth, the development of the concept of Gross National Product, and the statistical analysis of economic cycles.