Jones,CPA,is Auditing the Financial Statements of XYZ Retailing,Inc

question 35

Multiple Choice

Jones,CPA,is auditing the financial statements of XYZ Retailing,Inc.What assurance does Jones provide that direct effect noncompliance that is material to XYZ's financial statements and noncompliance that has a material but indirect effect on the financial statements will be detected?

• A) Direct effect noncompliance: Reasonable; indirect effect noncompliance: none.
• B) Direct effect noncompliance: Reasonable; indirect effect noncompliance: reasonable.
• C) Direct effect noncompliance: Limited; indirect effect noncompliance: none.
• D) Direct effect noncompliance: Limited; indirect effect noncompliance: reasonable.

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Definitions:

Country B

A hypothetical or specific reference to a nation identified as "B" for analysis or discussion purposes.

Self-selection

A situation where individuals select themselves into a group, causing potential bias in statistical analysis due to non-random sample characteristics.

Migration

The movement of people from one place to another with the intentions of settling, temporarily or permanently, in a new location. This can be driven by factors such as economic, social, political, or environmental reasons.