Which of the Following Statements About Forming an Audit Opinion

question 35

Multiple Choice

Which of the following statements about forming an audit opinion is FALSE?

• A)Auditors need to form an opinion on whether the financial statements are presented fairly in all material respects and in accordance with GAAP.
• B)The auditor must make a number of professional judgments as set out in CAS 700.
• C)The auditor must decide whether the audit team has obtained sufficient appropriate audit evidence providing reasonable assurance that the financial statements as a whole are free from material misstatement due to fraud or error.
• D)The auditor must decide if any uncorrected misstatements are material individually but not in aggregate.

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Definitions:

Unbiased Estimator

An unbiased estimator is a statistical term for an estimate that is expected to be equal to the true parameter of the population.

Population Parameter

A numerical value that summarizes or describes an aspect of a population, such as its mean or standard deviation.

Expected Value

The weighted average of all possible values of a random variable, reflecting the central tendency of the variable's probability distribution.

Population Standard Deviation

Population Standard Deviation measures the dispersion or variability within a set of values for an entire population, indicating how much the individual data points differ from the mean.