One of the Key Differences Between a Financial Statement Audit

question 45

Multiple Choice

One of the key differences between a financial statement audit and a value for money (VFM) audit is ________.

• A)in most cases,VFM audits have mandates established through legislation or contracts
• B)in a financial statement audit,the auditor has to use his or her professional judgment to redefine the broad mandate in specific terms with specific objectives
• C)in a VFM audit,standards are defined by professions and associations
• D)in a financial statement audit,sufficient appropriate evidence must be obtained to afford a reasonable basis to support the content of the auditor's report

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been charged against a fixed asset since it was put into use.

Useful Life

The estimated period over which an asset is expected to be usable by the company, impacting depreciation calculations.

Appraised Fair Value

The estimated market value of an asset as determined by a formal assessment or valuation process.

Cost

The amount of money or resources expended to acquire an asset, produce a product, or deliver a service.