Which of the Following Statements Concerning the Auditor's Use of the Work

question 31

Multiple Choice

Which of the following statements concerning the auditor's use of the work of an expert is correct?

• A) If the auditor believes that the determinations made by the expert are unreasonable, only an adverse opinion may be issued.
• B) If the expert is related to the client, the auditor is not permitted to use the expert's findings as corroborative evidence.
• C) The expert should be identified in the auditor's report if the auditor has relied on the expert in issuing an unmodified auditor's opinion.
• D) The expert should have an understanding of the auditor's corroborative use of the expert's findings.

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Definitions:

Adjusted Balances

Financial statement figures corrected for errors, omissions, or other adjustments as part of the reconciliation process.

Closing Entries

Entries recorded at the close of an accounting cycle to move balances from temporary to permanent accounts, thus preparing the temporary accounts for the upcoming period.

Ledger

A comprehensive collection of a company's accounts in which transactions are recorded and balanced.

T Accounts

A graphical representation of a general ledger account that is used for teaching, analysis, and management of accounts.