University:
Eastern Kentucky University
Course:
ACC 441 | Auditing I
Academic year:

2021
Views:

154

Pages:

2
Author:

Amira Hester

An independent audit adds value to the communication of financial information because the audit... lends credibility to the financial statements Which of the following best describes the reason why an independent auditor is often retained to report on financial statements? Different interests may exist between the entity preparing the statements and the persons using the statements, and thus outside assurance is needed to enhance the credibility of the statements. Which of the following best describes relationships among auditing, attest, and assurance services? Auditing is a type of assurance service. Which of the following statements relating to attest and assurance services is not correct? Financial statement auditing is a form of attest service but it is not an assurance service. For what primary purpose does the auditor obtain an understanding of the entity and its environment? To plan the audit and determine the nature, timing, and extent of audit procedures to be performed. Which of the following statements best describes the role of materiality in a financial statement audit? The lower the level at which the auditor assesses materiality, the greater the amount of evidence the auditor must gather. Which of the following is the most important reason for an auditor to gain an understanding of an audit client's system of internal control over financial reporting? Understanding a client's system of internal control can help the auditor assess risk and identify areas where financial statement misstatements might be more likely. Preliminary engagement activities include... All of these: understanding the client and the client's industry, determining audit engagement team requirements, ensuring the independence of the audit team and audit firm.

Audit Answer Key

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