Gathering and Objectively Evaluating Audit Evidence Requires the Auditor to Consider

question 58

Multiple Choice

Gathering and objectively evaluating audit evidence requires the auditor to consider:

• A) Whether an unmodified opinion should be issued
• B) Whether a modified opinion should be issued
• C) Whether the evidence is adequate to complete the audit
• D) Whether the evidence is competent and sufficient enough to render an audit opinion

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Definitions:

Discount Rate

The interest rate used to determine the present value of future cash flows or to discount future obligations.

Maturity

The predetermined date on which a financial instrument, loan, or security reaches its final payment, at which point the principal amount must be repaid.

Zero-Coupon Bond

A debt security that doesn't pay periodic interest, sold at a discount from its face value, and repays the face value at maturity.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, considering both the interest payments and the capital gain or loss.