If the Auditor Believes That the Financial Statements Are Not

question 26

Multiple Choice

If the auditor believes that the financial statements are not fairly stated or is unable to reach a conclusion because of insufficient evidence, the auditor

• A) should withdraw from the engagement.
• B) should request an increase in audit fees so that more resources can be used to conduct the audit.
• C) has the responsibility of notifying financial statement users through the auditor's report.
• D) should notify regulators of the circumstances.

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Definitions:

Cross-Functional Team

A group of people with different functional expertise working toward a common goal, typically involves members from varying departments or sectors within an organization.

Service Team

A group of individuals working together to provide customer or client services, focusing on meeting service goals and ensuring customer satisfaction.

Interdependence

A situation where two or more entities are dependent on each other.

Misattribution Error

A cognitive bias where an individual incorrectly identifies the source of a memory, emotion, or thought, leading to potential misunderstandings or erroneous beliefs.