The Auditor Is Required to Document in the Work Papers

question 52

Multiple Choice

The auditor is required to document in the work papers his understanding of the company and its environment and his assessment of the risks of material misstatement.This documentation should include

• A)the significant decisions during the discussion among management regarding the susceptibility of the company's financial statements to material misstatement due to fraud
• B)how and when the discussion occurred
• C)the audit team members who participated
• D)the identified and assessed risks of material misstatement at both the financial statement level,and the procedures performed to obtain the information
• E)both A and C
• F)both B and C
• G)both C and E

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Definitions:

Electronic Records

Digital form of information storage, used across various sectors for efficient and accurate information management.

Uniform Electronic Transactions Act

A law adopted by many states in the U.S. that establishes the legal validity of electronic records and signatures in commercial and governmental transactions.

Electronic Contracts

Agreements formed, signed, or executed electronically, which are legally binding under electronic commerce laws.

Statute of Frauds

A legal principle requiring certain contracts to be written and signed by the parties involved to be enforceable.