The Performance Section of the "Principles Underlying an Audit" Is

question 39

Multiple Choice

The Performance section of the "Principles Underlying an Audit" is concerned with:

• A)proper planning and supervision, appropriate materiality levels, and sufficient appropriate audit evidence.
• B)an audit opinion in accordance with the auditor's findings, whether the financials are presented fairly, and whether the financial are in accordance with the applicable financial reporting framework.
• C)whether the auditor has unrestricted access to those within the entity from whom the auditor needs to obtain audit evidence.
• D)complying with ethical requirement, appropriate competence and maintaining professional skepticism.

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Definitions:

Inventory Increase

A situation where a company experiences a rise in the level of goods and materials on hand, reflecting either a buildup in anticipation of higher sales or slower sales than expected.

Depreciation Tax Shield

The tax saving achieved by a company from deducting depreciation expenses on its taxable income.

Depreciation

The allocation of the cost of an asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Taxes

Mandatory financial charges or levies imposed by a government on individuals and organizations to fund public expenditures.