An Auditor Is Required to Establish an Understanding with a Client

question 54

Multiple Choice

An auditor is required to establish an understanding with a client regarding the responsibilities for each engagement. This understanding generally includes:

• A)management's responsibility to guarantee that there are no material misstatements due to fraud.
• B)the auditor's responsibility to plan and perform the audit to provide reasonable, but not absolute, assurance of detecting material errors or fraud.
• C)management's responsibility for providing the auditor with an assessment of the risk of material misstatement due to fraud.
• D)the auditor's responsibility for the fairness of the financial statements.

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Definitions:

Median

The middle value of a sorted set of data, or the point that divides a distribution into two equal halves, used as a measure of central tendency.

Set Of Data

A collection of data values or points, whether numerical or categorical, gathered from a study or observational process.

Mode

The value appearing with the greatest frequency in a dataset.

Median

The middle value in a list of numbers sorted in ascending or descending order, or the average of the two middle numbers when the list has an even number of values.