Which of the Following Statements Regarding the Reporting of Critical

question 50

Multiple Choice

Which of the following statements regarding the reporting of critical audit matters (CAMs) under PCAOB guidance is incorrect?

• A)Matters that are material to the financial statements but do not relate to accounts or disclosures are not CAMs.
• B)If no CAMs arose during the audit,the audit report should not contain any reference to CAMs.
• C)The disclosure of CAMs under PCAOB guidance is similar to disclosure of KAMs under IAASB guidance.
• D)All of the above are incorrect.

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Definitions:

Milligrams

A unit of mass in the metric system equal to one thousandth of a gram.

Grams

A metric unit of mass equal to one thousandth of a kilogram, widely used in science and everyday measurement.

Liters

A metric unit of volume equal to one cubic decimeter (dm^3), commonly used to measure liquids and other volumetric quantities.

Milliliters

A unit of volume in the metric system, equivalent to one thousandth of a liter or approximately 0.034 fluid ounces.