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.

---

Definitions:

Legally Binding

A term that describes an agreement or contract that is enforceable by law.

Not Admissible

Refers to evidence or arguments that are not allowed to be presented in a legal proceeding or academic setting.

Client's Autonomy

The right of clients, especially in healthcare settings, to make informed decisions about their own care and treatment, respecting their independence.

Ethics Committee

A group typically within a healthcare setting or research institution tasked with reviewing and addressing ethical issues and dilemmas that arise.