The Auditor Is Unable to Obtain Absolute Assurance That the Financial

question 82

Multiple Choice

The auditor is unable to obtain absolute assurance that the financial statements are free from material misstatement because of inherent limitations,which arise from

• A)the structure of financial reporting
• B)the selection of audit procedures
• C)the need for the audit to be conducted within a reasonable period of time and at a reasonable cost
• D)the fact that there is no such thing as absolute assurance

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Definitions:

Electrical Energy

A form of energy resulting from the flow of electric charge through a conductor, used to power electrical devices.

Temperature-sensing Device

A device used to detect and measure temperature changes, often used for control or safety purposes.

Stator Coil Windings

Coils of wire wound around the stationary part of an electric motor or generator, which generate magnetic fields when electric current flows through them.

Full-load Speed

The speed at which a motor operates when it is carrying its rated load under specified conditions.