Which of the Following Is a True Statement About an Auditor's

question 54

Multiple Choice

Which of the following is a true statement about an auditor's evaluation of an accounting system?

• A) If a company has a haphazard accounting system then the auditor has greater confidence that the financial statements are reliable.
• B) If a company has an efficient and orderly accounting system then the auditor has greater confidence that the financial statements are reliable.
• C) If a company has an efficient and orderly accounting system then the auditor must do more detailed work to verify that the financial statements are reliable.
• D) None of these are correct.

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Definitions:

Stained Glass

In Gothic architecture, the colored glass used for windows.

Byzantine Mosaics

Decorative art forms from the Byzantine Empire, made by fitting together small pieces of colored glass, stone, or other materials to create intricate designs.

Italian Fresco

A technique of mural painting executed upon freshly laid lime plaster, allowing pigments to merge with the plaster for permanence, notably used in Italy during the Renaissance.

English Gothic

An architectural style prevalent in England from the late 12th to the 16th century, characterized by pointed arches, ribbed vaults, and flying buttresses.