In Performing a Financial Statement Audit in Accordance with Government

question 36

Multiple Choice

In performing a financial statement audit in accordance with government auditing standards,an auditor is required to report on the entity's compliance with laws and regulations.This report should

• A) State that compliance with laws and regulations is the responsibility of the entity's management.
• B) Describe the laws and regulations with which the entity must comply.
• C) Provide an opinion on overall compliance with laws and regulations.
• D) Indicate that the auditor does not possess legal skills and cannot make legal judgments.

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Definitions:

Mental Age

A measure of an individual's intellectual development as compared to the average intellectual capacity of individuals in the same age group.

IQ

An abbreviation for Intelligence Quotient, a measure of a person's intellectual capabilities in relation to their age group.

Heredity

The passing of traits from parents to their offspring, either through asexual reproduction or sexual reproduction.

Cultural Bias

The tendency to interpret or judge human behavior and cultures based on the norms and values of one's own culture.