Planning an Audit of a Financial Report Requires That an Auditor

question 16

Multiple Choice

Planning an audit of a financial report requires that an auditor plan their audit to reduce audit risk to an acceptable low level. Audit risk can be defined as;

• A) The risk that the auditor does identify the material misstatements
• B) The risk that the auditor expresses and inappropriate opinion at the conclusion of the audit
• C) That fraud exists in the accounts and the client is aware that the fraud exists
• D) That sufficient appropriate evidence cannot be gathered to form an opinion of the truthfulness of the financial statements

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Definitions:

VRAM

Stands for Video Random Access Memory, a type of memory used to store image data that a computer display will use to render graphics efficiently.

RAM

Random Access Memory, a form of computer memory that can be accessed randomly, used for storing the operating system, applications, and data currently in use for quick access by the device's processor.

Supervisor Program

A system software that controls the execution of other programs and manages system resources.

Authentication

The process of verifying the identity of a person or device, typically based on a username and password or other security measures.