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Advanced Audit First Assignment
Advanced Audit First Assignment
State the objective of the audit of financial statement. In general terms, how do
auditors meet that objective?
Audits are expected to provide a higher degree of assurance for the detection -2
.of material frauds than is provided for an equally material error
Answer
Audits are expected to provide a lower degree of assurance for the detection of
.material frauds than is provided for an equally material error
Auditing standards indicate reasonable assurance is a high, but not absolute, level of
.assurance that the financial statements are free of material misstatements
Choose the correct answer
In certifying their annual financial statements, the CEO and CFO of a public -1
:company certify that the financial statements comply with the requirements of
.a) GAAP
.b) the Sarbanes-Oxley Act
.c) the Securities Exchange Act of 1934
.d) GAAS
The responsibility for the preparation of the financial statements and the -5
:accompanying footnotes belongs to
.a) the auditor
.b) management
.c) both management and the auditor equally
.d) management for the statements and the auditor for the notes
6- Which of the following best describes the reason why an independent auditor
reports on financial statements?
a- A misappropriation of assets may exist, and it is more likely to be detected by
independent auditors.
b- Different interests may exist between the company preparing the
statements and the persons using the statements.
c- A misstatement of account balance may exist and is generally corrected as the
result of the independent auditor's work.