When Performing a Review Service, Auditors Must Make Inquiries of Management

question 104

Multiple Choice

When performing a review service, auditors must make inquiries of management. Which of the following inquiries are typically made of management?

• A) Is each account on the financial statements prepared in conformity with accounting standards and consistently applied?
• B) What unusual or significant transactions occurred this year?
• C) Do you have knowledge of an actual or suspected fraud?
• D) All of the above are inquiries typically made of management.

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Definitions:

Know-Nothings

A nativist political movement in the mid-19th century America, officially known as the American Party, which was anti-Catholic and anti-immigrant.

Republican Party

One of the two major contemporary political parties in the United States, also known as the GOP (Grand Old Party), it was founded in 1854 primarily to oppose the spread of slavery.

Slavery Abolition

The legal termination and prohibition of slavery, involving the emancipation of enslaved people and the banning of the slave trade and slave ownership.

John Brown

An American abolitionist leader in the 19th century known for his militant opposition to slavery.