Asking the Right Questions and Probing Further Until the Auditor

question 97

True/False

Asking the right questions and probing further until the auditor is satisfied with the responses can help the auditor to detect a material misstatement in the financial statements.

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Definitions:

Financial Statement

Reports that present the financial performance, position, and cash flows of a business for a specified period.

Permanent/Temporary

Terms used to distinguish between accounts or items that either persist over multiple accounting periods (permanent) or exist for only one period (temporary).

Normal Balance

The side (debit or credit) of an account that is typically increased in accounting.

Financial Statement

Reports that provide detailed information about a company's financial performance and position.