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:

Decrease REM

refers to a reduction in the duration or intensity of Rapid Eye Movement sleep, a sleep stage associated with vivid dreaming and brain restoration.

Increase REM

Refers to efforts or methods aimed at increasing the duration or frequency of Rapid Eye Movement sleep, a phase associated with vivid dreaming.

Stage 2 Sleep

A period of sleep characterized by specific brain waves (sleep spindles and K-complexes), signifying a deeper sleep than stage 1 and a transitional phase into deeper stages of sleep.

Psychoanalyst

A therapist who practices psychoanalysis, a method of exploring the unconscious mind to treat psychological disorders and understand behavior.