When Auditors Are Engaged in Work Where No Assurance Is

question 45

Multiple Choice

When auditors are engaged in work where no assurance is provided this means;

• A)An assurance is not provided as the client determines the nature,timing and extent of the evidence that is gathered and will determine their own outcome.
• B)The auditors found anomalies in the financial information and no assurance will be given until further testing is conducted.
• C)That the review indicates adverse finding and the auditors are not prepared to give an assurance that the information gives a true and fair view.
• D)No assurance is provided as the client will determine the outcome once the auditors have gathered the data.

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Definitions:

Time Value

The concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Payback Period

The amount of time required for an investment to generate cash flows sufficient to recover its initial cost, a measure of an investment's breakeven point in time.

Cash Inflows

The total amount of money being transferred into a business, typically from operational, investment, and financing activities.

Cost Recovery

The process of regaining the value of an expense or investment over time through revenue or savings.