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

question 105

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 transactions or accounting estimates or uncertainties
• B)results of audit procedures indicating that the financial statements or disclosure are not misstated or the need for an auditor to revise his previous assessment of the risk of misstatement
• C)circumstances that made it relatively easy for the auditor to apply auditing procedures
• D)findings that could result in modifications to management's report
• E)adjustments that the auditor has proposed to the financial statements
• F)both A and E
• G)both B and D
• H)both D and E

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Definitions:

Payment

is the transfer of money or goods from one party to another in exchange for goods, services, or to fulfill a legal obligation.

Future Value

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today.

Deposit

A sum of money placed or kept in a bank account, usually to gain interest.

Savings Account

A deposit account held at a bank or institution that pays interest but typically has limitations on how often withdrawals can be made.