Which One of the Following Is False Regarding the Adequacy

question 160

Multiple Choice

Which one of the following is false regarding the adequacy of disclosures in a financial statement audit?

• A)The auditor should consider matters for disclosure while gathering evidence during the course of the audit,not just at the end of the audit.
• B)One of the key disclosures is a summary of significant accounting policies used by the company.
• C)Disclosures should be limited to only checklist items.
• D)The auditor's report does not specifically cover the statements made by management in the "Management Discussion and Analysis" (MD&A)section of the annual report.

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Definitions:

Subsidiary Ledger

A detailed ledger that contains the individual accounts related to a specific parent account, facilitating more detailed financial tracking and analysis.

General Ledger

A complete record of all financial transactions over the life of a company, organized by accounts.

Detail

A specific or minor part of a larger matter; often refers to particular information or features.

Accounting System

A systematic process of recording, summarizing, and reporting financial transactions of a business to ensure accurate financial statements.