The Auditor Is Required to Document His Response to the Assessed

question 51

Multiple Choice

The auditor is required to document his response to the assessed risk of material misstatement.This documentation should include

• A)the results of audit procedures,including the procedures designed to address the risk of management override of internal controls
• B)the overall response to the assessed risk of misstatement at the financial statement level and the nature,timing,and extent of audit procedures at the assertion level and a linkage between the audit procedures and the assessed risk of material misstatement
• C)other conditions and analytical procedures that cause the auditor to believe that additional auditing procedures were appropriate to address the risk of material misstatement due to fraud
• D)the significant decisions during the discussion among management regarding the susceptibility of the company's financial statements to material misstatement due to fraud
• E)the identified and assessed risks of material misstatement at both the financial statement level,and the procedures performed to obtain the information
• F)both A and C
• G)both B and D
• H)both C and E

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Definitions:

National Labor Relations Board

A federal agency of the United States responsible for enforcing US labor law in relation to collective bargaining and unfair labor practices.

General Counsel's Office

The legal department within a corporation, providing advice on legal matters and representing the company in court.

Elected Officials

Individuals who have been chosen through a voting process to hold public office positions in government.

Wagner Act

Also known as the National Labor Relations Act of 1935, it established the rights of workers to organize, join labor unions, and engage in collective bargaining.