Significant Findings Are to Be Documented by the Auditor,including Actions

question 47

Multiple Choice

Significant findings are to be documented by the auditor,including actions taken to address them and the basis for the final conclusion reached.Findings that might be significant include

• A)accounting for complex or unusual assertions or accounting predictions
• B)results of audit procedures indicating that the financial statements or disclosure could be materially misstated or the need for an auditor to revise his previous assessment of the risk of material misstatement
• C)circumstances that made it difficult for the auditor to apply auditing procedures
• D)findings that could result in modifications to management's report
• E)adjustments that the auditor has made to the financial statements
• F)both A and D
• G)both B and C

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Definitions:

Current Assets

Current assets are the resources a company owns that are expected to be converted into cash, sold, or consumed within a year or within the operating cycle, whichever is longer.

Return on Total Assets

A financial ratio that measures the profitability of a company relative to its total assets, indicating how efficiently a company uses its assets to generate profits.

Profit Margin

A financial metric used to assess a company's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold.

Total Asset Turnover

A financial metric that measures a company's efficiency in using its assets to generate sales or revenue.