The Auditor's Best Defense When Material Misstatements Are Not Uncovered

question 67

Multiple Choice

The auditor's best defense when material misstatements are not uncovered is to have conducted the audit

• A) in accordance with generally accepted auditing standards.
• B) as effectively as reasonably possible.
• C) in a timely manner.
• D) only after an adequate investigation of the management team.

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Definitions:

AASB 141

An Australian accounting standard that covers the agricultural sector, detailing the accounting for agricultural activity including the recognition and measurement of biological assets and agricultural produce.

IAS 41

An international accounting standard that prescribes the accounting treatment and reporting of agricultural activity.

Market Price

The current price at which an asset or service can be bought or sold in a marketplace.

Biological Transformation

The processes of growth, degeneration, production, and procreation that cause qualitative or quantitative changes in a biological asset.