Which of the Following Statements Accurately Describes the Auditor's Reporting

question 18

Multiple Choice

Which of the following statements accurately describes the auditor's reporting responsibility for a financial statement audit?

• A)The auditor will state explicitly whether the financial statements are fairly presented in accordance with the applicable financial reporting framework.
• B)The auditor will identify in the auditor's report those circumstances in which auditing principles have not been consistently observed in the current period in comparison to the preceding period.
• C)The auditor will review adjusting journal entries for accuracy,and if the auditor concludes those entries are not reasonably accurate,the auditor must so state in the auditor's report.
• D)The auditor will express an unqualified opinion on the financial statements or will conduct additional audit procedures until such an opinion can be expressed.

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Definitions:

Upsetting Thoughts

Thoughts that cause emotional distress or discomfort.

Objectively

In a manner that is based on unbiased facts and evidence, without influence from personal feelings or opinions.

Dichotomous Thinking

A cognitive distortion involving seeing things in black and white categories, without recognizing the continuum or grey areas in between.

Selective Abstraction

A cognitive distortion where an individual focuses on a single negative detail or event, often out of context, leading to a skewed perception of reality.