Indicate Whether You Agree or Disagree with the Following Statements

question 39

Essay

Indicate whether you agree or disagree with the following statements and explain your reasoning.
a) Maurice Lecuyer feels that an internal auditor that reports to the chief financial officer of the company can be as independent as an auditor that reports to the audit committee.
b) Jillian Humphrey discovered a very material overstatement in the financial statements of Humphrey's Holistic Medicine. She felt that the misstatement would have an impact on the decisions of users of the financial statements, and indicated to her audit senior that she would be including it as an "emphasis of matter" paragraph in the audit report.
c) An auditor is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards, and for such internal control as is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
d) An assurance engagement involves evaluation or measurement of subject matter against criteria.

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Definitions:

Rapid Eye Movements

Are quick, jerky movements of the eyes that occur during REM sleep, a stage associated with vivid dreaming.

Alpha Waves

Brain waves detected by an EEG that represent a state of wakeful relaxation.

Motor Cortex

A region of the cerebral cortex involved in planning, controlling, and executing voluntary motor functions.

Brainstem

The part of the brain connecting the spinal cord with the forebrain and cerebrum, responsible for autonomic functions necessary for survival.