The Auditor Has No Responsibility to Plan and Perform the Audit

question 106

Multiple Choice

The auditor has no responsibility to plan and perform the audit to obtain reasonable assurance that misstatements, whether caused by errors or fraud, that are not ________ are detected.

• A)important to the financial statements
• B)statistically significant to the financial statements
• C)material to the financial statements
• D)identified by the client

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Definitions:

Formal Hierarchy

An organized structure where individuals or groups are ranked one above the other according to status or authority.

Equity Allocation

Equity allocation in negotiations refers to the process of distributing resources, rights, or responsibilities among parties in a manner deemed fair or equitable.

Magnitude

The size, extent, or importance of something.

Contribution

The act of giving or supplying something (such as knowledge, materials, or effort) towards a common goal or project.