When Evaluating the Audit Findings, the Auditor Should Be Satisfied

question 73

Multiple Choice

When evaluating the audit findings, the auditor should be satisfied that the

• A) amount of known misstatement is documented in the management representation letter.
• B) estimate of the total known and likely misstatements is less than a material amount.
• C) estimate of the total likely misstatement includes sample error.
• D) amount of known misstatement is acknowledged and recorded by the client.

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Definitions:

Competence

The ability or skill to perform a task effectively or to a satisfactory standard.

Distress

The effect of unpleasant and undesirable stressors.

Frustration

The feeling of being upset or annoyed, especially because of inability to change or achieve something.

Relatedness

The feeling of being connected or related to others, often considered a fundamental human need.