An Audit Performed in Accordance with Generally Accepted Auditing Standards

question 68

Multiple Choice

An audit performed in accordance with generally accepted auditing standards should:

• A)Be expected to provide absolute assurance that noncompliance with all laws will be detected where internal control is effective.
• B)Be relied upon to disclose violations of truth in lending laws.
• C)Encompass a plan to actively search for all illegalities which relate to operating aspects.
• D)Not be relied upon to provide absolute assurance that all noncompliance with laws will be detected.

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Definitions:

Answering Machine

A device that automatically answers telephone calls and records messages from callers.

Weighing Balance

A device used for determining mass by balancing an unknown mass against a known standard.

Online Databases

Digital collections that can be accessed through the internet, containing various types of information including articles, data sets, and multimedia.

Federal Trade Commission

A United States federal agency designed to prevent anticompetitive, deceptive, and unfair business practices.