Which of the Following Would Normally Be Considered Sufficient to Demonstrate

question 79

Multiple Choice

Which of the following would normally be considered sufficient to demonstrate due care on the part of the auditor?

• A) The auditor had its work reviewed by another audit firm
• B) The auditor cites adherence to generally accepted auditing standards (GAAS)
• C) No omissions or misstatements have been found in the client's financial statements
• D) The auditor signs a statement expressing its unmodified opinion as to the fairness of the financial statements

---

Definitions:

Government Central Planning

A system where the government makes all decisions on the production and distribution of goods and services.

Centrally Planned

An economic system where major decisions regarding production, distribution, and investment are made by the government or a central authority.

Socialist Economy

An economic system in which the means of production, distribution, and exchange are owned or regulated by the community as a whole, with an aim toward equitable distribution of wealth and resources.

Norway

A Nordic country in Northern Europe known for its advanced economy, high quality of life, and robust welfare system.