An auditor is required to establish an understanding with a client regarding the responsibilities for each engagement. This understanding generally includes:
A. management's responsibility for providing the auditor with an assessment of the risk of material misstatement due to fraud.
B. the auditor's responsibility to plan and perform the audit to provide reasonable, but not absolute, assurance of detecting material errors or fraud.
C. the auditor's responsibility for the fairness of the financial statements.
D. management's responsibility to guarantee that there are no material misstatements due to fraud.
Answer: B
You might also like to view...
Detailed information about a company's investments is appropriately disclosed in the notes to the financial statements
Indicate whether the statement is true or false
What is the third step in the negotiation process outlined in this chapter?
a. Outlining goals and objectives b. Setting ground rules and shaping expectations c. Providing supporting evidence for positions d. Fake crying when losing seems a sure thing
Which of the following consumer products is most likely to be classified as "unsought"?
A. life insurance B. tires C. house paint D. band aids E. tablet computer
Book value per share reflects the value per share if a company is liquidated at balance sheet amounts.
Answer the following statement true (T) or false (F)