Why Does the Auditor Divide the Financial Statements into Segments

question 54

Multiple Choice

Why does the auditor divide the financial statements into segments around the financial statement cycles?

• A) Most auditors are trained to audit cycles as opposed to entire financial statements.
• B) The approach aids in the assignment of tasks to different members of the audit team.
• C) The cycle approach is required by auditing standards.
• D) The cycle approach allows the auditor to detect illegal acts.

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Definitions:

Organisations

Entities where groups of individuals work together towards common goals or objectives, structured within a defined framework.

Integration of Interests

involves aligning the diverse goals, needs, or desires of different stakeholders to achieve a cohesive and cooperative outcome.

Socioeconomic Management

involves the integration of social and economic considerations into the planning, decision-making, and management processes of an organization to address broader societal challenges.

Quantitative Management

A management approach that focuses on using mathematical models, statistics, and numerical techniques to support decision-making processes.