The Third Section of the Audit Report Describes the Auditor's

question 68

Multiple Choice

The third section of the audit report describes the auditor's responsibilities.This section states that the auditor is responsible for

• A)asking management and others in the company,including the in-house legal counsel about potential legal liabilities
• B)reviewing minutes of meetings of those charged with governance and correspondence between the company and its internal counsel
• C)expressing an opinion on the financial statements
• D)testing the client's system internal controls

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Definitions:

Knowledge and Skills

The theoretical understanding, practical abilities, and expertise required to perform tasks or solve problems efficiently.

Barrier to Task Completion

An obstacle or challenge that hinders the ability to successfully finish a task.

Highly Specific Goals

Objectives that are distinctly defined with clear, precise outcomes that leave little to no ambiguity in interpretation.

Inadequate Preparation

The lack of sufficient readiness or groundwork, often leading to difficulties in effectively handling tasks, responsibilities, or challenges.