Due Professional Care, the Third General Standard, Is Concerned with What

question 18

Multiple Choice

Due professional care, the third general standard, is concerned with what is done by the independent auditor and how well it is done.For example, due care in the matter of audit documentation requires that audit documentation of the evidence gathered by the auditor meets which of the following criteria?

• A)Workpapers are prepared in sufficient detail so that they can be given to the client for future reference.
• B)The content is sufficient to provide support for the auditor's opinion, including the auditor's representation as to compliance with auditing standards.
• C)Audit evidence is principally gathered to determine if the client's financial statements, as prepared by management, can be relied upon to make managerial decisions about the firm.
• D)Audit evidence as displayed in the workpapers is primarily performed to protect the auditing firm in the case of a lawsuit by investors.

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Definitions:

Private Investment

The use of private individual or corporate funds to invest in assets with the expectation of generating financial returns.

Western Artists

Artists originating from or primarily associated with the Western world (Europe, North America, Australasia), often referenced in the context of Western art history or culture.

Local Artists

Artists who produce and showcase their work primarily within their local communities or regions, contributing to the cultural and creative landscape.

Developing Nations

Countries that are in the process of industrialization and show lower levels of economic and industrial development compared to more developed nations, often working towards improving living conditions.