Which of the Following Is least Likely to Be Considered

question 42

Multiple Choice

Which of the following is least likely to be considered an appropriate response relating to risks the auditors identify at the financial statement level?

• A)Assign more experienced staff.
• B)Incorporate additional elements of unpredictability in the selection of audit procedures.
• C)Increase the scope of auditor procedures.
• D)Emphasize the need to remain neutral,rather than to exercise professional skepticism.

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, including the balance sheet, income statement, and cash flow statement.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations using its current assets.

Cash Flows

The inflows and outflows of cash and cash equivalents for a company.

Comparable Companies

A method of valuation which involves comparing the economic ratios of a company to those of its peers within the same industry in order to evaluate its financial health and determine its market value.