When CPAs Do Audits for Specified Elements, Accounts, or Items

question 107

Multiple Choice

When CPAs do audits for specified elements, accounts, or items,

• A) materiality is defined in terms of the overall financial statements.
• B) materiality is defined in terms of the elements, accounts, or items being audited.
• C) auditors do not need to extend their audit efforts to include other elements, accounts, or items that are interrelated with those being audited.
• D) the authority for auditing specified elements, accounts, or items is in the review and compilation standards.

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Definitions:

Circular Fashion

A pattern or method that progresses in a way that eventually returns to the starting point.

Rotary Circular Files

Tools used in dentistry and endodontics for enlarging and shaping canals during root canal treatments.

Patient Records

Documents that contain detailed and comprehensive information regarding a patient's health history, treatments, and care.

Plastic Inserts

Components made of plastic designed to fit into another object to serve as a reinforcement, filler, or adapter.