When the Auditor Is Attempting to Determine the Extent to Which

question 98

Multiple Choice

When the auditor is attempting to determine the extent to which external users rely on a client's financial statements, they may consider several factors except for

• A) client size.
• B) concentration of ownership.
• C) nature and amounts of liabilities.
• D) assessment of detection risk.

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Definitions:

Variable

An element, feature, or factor that is liable to vary or change.

Arbitrary Numbers

Numbers chosen without any particular reason or pattern, often used in examples or theoretical discussions.

Interval Data

Data measured along a scale, in which each point is placed at a specific distance from a reference point, allowing for meaningful comparisons between data points.

Nominal Data

Data categorized into discrete groups or categories that cannot be ordered or ranked with respect to one another.