Which of the Following Is a Principle Underlying an Audit

question 39

Multiple Choice

Which of the following is a principle underlying an audit conducted in accordance with generally accepted auditing standards?

• A)The audit provides reasonable assurance the client will remain in business for at least one year.
• B)The audit report expresses an opinion on whether the financial statements are free of material and immaterial misstatement.
• C)Auditors are responsible for,among other things,maintaining professional objectivism,exercising professional engagement,and obtaining appropriate documentation.
• D)An auditor's opinion enhances the degree of confidence that intended users can place in the financial statements.

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Definitions:

Preventing Deleterious Changes

Taking actions to stop harmful or damaging modifications from occurring.

McGrath

Refers potentially to Joseph Edward McGrath, a psychologist known for his research on small groups and team dynamics.

Executive Action/Internal

Executive action refers to decisions or measures taken by an organization's leadership, often involving strategic, policy, or managerial changes within an internal framework.

Interdependent

Describes a relationship or condition where entities or individuals rely on each other, highlighting mutual dependency.