Which of the Following Statements Is True

question 108

Multiple Choice

Which of the following statements is true?

• A) Auditors have generally found that the most effective and efficient way to conduct an audit is to obtain some assurance for each class of transaction and for the ending balance of the related account.
• B) Management's assertions follow and are closely related to the audit objectives.
• C) The auditor's primary responsibility is to find and disclose fraudulent management assertions.
• D) Assertions about presentation and disclosure deal with whether the accounts have been included in the financial statements at appropriate amounts.

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Definitions:

Cosign

To sign jointly with another or others, especially in agreeing to be responsible for a loan if the primary borrower defaults.

Minor

A person who is under the legal age of majority, and therefore has limited legal rights and responsibilities.

Secured Credit

A loan or credit extended where the borrower pledges an asset as collateral to guarantee repayment.

Unsecured Credit

A type of credit that is not backed by collateral, meaning the lender relies on the borrower's creditworthiness rather than security in case of default.