The Incorrect Statement in Relation to Measurement Issues for Auditors

question 9

Multiple Choice

The incorrect statement in relation to measurement issues for auditors is:

• A)It is easier for the auditor to gather evidence if profit is measured by changes in fair value than when it is determined by matching revenue and expense transactions.
• B)ISA 540 is the international auditing standard that provides guidance for auditing impairment losses.
• C)Under the international auditing standard on impairment losses auditors are required to judge if the amount recognised as an impairment loss is reasonable
• D)Auditors must assess whether the asset or liability values are properly determined from management's significant assumptions.

---

Definitions:

Tort

A civil wrong that causes a claimant to suffer loss or harm, resulting in legal liability for the person who commits the tortious act.

Malpractice Lawsuit

A legal case brought against healthcare providers for injury caused to a patient due to professional negligence or failure to provide adequate care.

Lack of Informed Consent

A situation where a patient has not been adequately informed about the risks and benefits of a medical procedure or treatment before agreeing to it.

Herniated Disk

A condition where a spinal disk bulges or breaks open, potentially pressing on nerves and causing pain or discomfort.