Which of the Following Best Expresses the Requirement to Establish

question 25

Multiple Choice

Which of the following best expresses the requirement to establish with the client an understanding of the responsibilities the auditor and company is taking for the audit engagement?

• A) Management asserts there are no material misstatements in the financials.
• B) Auditors assert that the primary audit goal is audit efficiency.
• C) Auditors assert that their primary responsibility is to plan and perform the audit in order to provide reasonable assurance as to the detection of material misstatement due to error or fraud.
• D) Management's assertion that they will provide the auditor with a risk assessment as to material misstatements due to errors or fraud in the company's financial statements.

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Definitions:

Exclamation Mark

A punctuation mark (!) used after an interjection or exclamation to indicate strong feelings or high volume.

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Intense emotions that deeply affect a person's mood and wellbeing.

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A mark or series of marks used in writing or printing to indicate an omission, especially of letters or words.

Omitting Word

The act of leaving out a word or words from a sentence or document.