In Which of the Following Aspects Does Audit Differ from Compilation

question 38

Multiple Choice

In which of the following aspects does audit differ from compilation or review?

• A) An audit gives reasonable level of assurance to the users, whereas a compilation or review does not give any level of assurance to the users.
• B) An audit requires an understanding of the entity's internal controls and assessment of fraud risk, whereas a compilation or review does not require such understanding or assessment.
• C) An audit requires an auditor or accountant to perform inquiry and analytical procedures, whereas a compilation or review does not require such procedures.
• D) An audit is performed to obtain limited assurance that there are no material modifications that should be made to the financial statements, whereas a compilation or review is performed without obtaining any level of assurance.

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Definitions:

Participation

The act of taking part or being involved in a particular activity, process, or decision-making.

People-Oriented Style

A leadership approach focused on building relationships, valuing team members, and prioritizing their needs and well-being.

Inclusive

A strategy or approach that ensures all people, regardless of their differences, have equal opportunities and are not excluded.

Empowering

The process of giving individuals or groups the authority or power to take certain actions, often aimed at fostering independence and decision-making capability.