When the Auditor Is Attempting to Determine the Extent to Which

question 98

Multiple Choice

When the auditor is attempting to determine the extent to which external users rely on a client's financial statements, they may consider several factors except for

• A) client size.
• B) concentration of ownership.
• C) nature and amounts of liabilities.
• D) assessment of detection risk.

---

Definitions:

Time Utility

The enhancement of a product's or service's value by making it available at a time that is convenient or desirable for consumers.

Place Utility

The value added to products by having them in a location where they are accessible to potential buyers.

Digital Marketspace

An online environment where goods and services are traded, leveraging digital technologies for advertising, sales, and customer engagement.

Digital

Pertaining to technology that generates, stores, and processes data in terms of two states: positive and non-positive. Digital technology includes the internet, mobile computing, and smart devices.