1. A basic assumption that underlies financial reporting is that an entity will continue as a going concern. A. True 2. A change in accounting estimate is an example of an accounting change that affects comparability and requires an explanatory/emphasis-of-matter…
1. An auditor who accepts an audit engagement and does not possess expertise with respect to the business entity’s industry, should A. Obtain a knowledge of matters that relate to the nature of the entity’s business. 2. An auditor would…
1. A confirmation is used to: A. verify a representation from a third party. 2. An auditor would issue an adverse opinion if: A. the statements taken as a whole do not fairly present the financial condition and results of…
1.Why do auditors generally use a sampling approach to evidence gathering Auditors must balance the cost of the audit with the need for precision. 2.Which of the following statements best describes a relationship between sample size and other elements of…
