After Fieldwork Audit Procedures Are Completed for a Public Company

question 75

Multiple Choice

After fieldwork audit procedures are completed for a public company and private company whose financial statements are expected to be widely distributed, a partner of the CPA firm who has not been involved in the audit performs an engagement quality review of the working papers. This review focuses on:

• A)an evaluation of the significant judgments made by the engagement teams and the conclusions reached in formulating the audit report.
• B)irregularities involving the entity's management and its employees.
• C)the materiality of the adjusting entries proposed by the audit staff.
• D)the communication of internal control weaknesses to those charged with governance.

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Definitions:

Inferential Statistical Analyses

A branch of statistics that allows researchers to make predictions or inferences about a population based on a sample of data.

Scientific Observation

The active acquisition of information from a primary source, using standardized methods to gather empirical evidence in a scientific context.

Unbiased

Lacking prejudice or favoritism; fair and impartial.

Categorizing

The process of sorting or arranging objects, ideas, or information into groups based on shared characteristics.