When Assessing Whether the Financial Statements Are Auditable, the Auditor

question 74

Multiple Choice

When assessing whether the financial statements are auditable, the auditor must consider

• A) that the integrity of management and the adequacy of accounting records are the two primary factors determining auditability.
• B) that the integrity of management and the adequacy of risk management are the two primary factors determining auditability.
• C) that if all of the transaction information is available only in electronic form without a visible audit trail, the company cannot be audited.
• D) the control risk before determining if the entity is auditable.

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