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:

Laws of Economics

Fundamental principles that govern economic behavior and interactions, such as supply and demand, cost-benefit analysis, and incentives.

Interest-Rate Cost-Of-Funds

The cost to banks or financial institutions of acquiring funds to lend, which can include interest paid on deposits or on borrowed funds.

Marginal Benefit

Additional value or satisfaction obtained by consuming an extra unit of a good or service.

Utility-Maximizing Rule

A principle in economics that states individuals allocate their resources to maximize their utility or satisfaction.