PCAOB Auditing Standards Require the Auditor to Make Inquiries of the Audit

question 108

True/False

PCAOB auditing standards require the auditor to make inquiries of the audit committee about the risks of material misstatement.

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Definitions:

Unadjusted Trial Balance

A preliminary report that lists all the balances of a company's accounts before making any adjusting entries.

Post-Closing Trial Balance

A list of all the account balances of a business after closing entries for the accounting period have been made, ensuring the accounts are ready for the next period.

Financial Statements

Comprehensive reports created to communicate the financial performance, position, and cash flows of a business to external and internal stakeholders.

Adjusting Entries

Accounting records entries recorded at the conclusion of an accounting cycle to apportion revenues and expenditures to the time period they truly took place.