Podcast
Questions and Answers
What is one of the advantages of audited accounts?
What is one of the advantages of audited accounts?
- They provide low quality information
- They create uncertainty for shareholders
- They encourage employees to commit fraud
- They give confidence to users about the information's quality (correct)
Who benefits from the safeguarding of financial interests by audited accounts?
Who benefits from the safeguarding of financial interests by audited accounts?
- Employees
- Owners of the company (shareholders) (correct)
- Government authorities
- Creditors
What do audited statements help government authorities with?
What do audited statements help government authorities with?
- Settling liability for taxes (correct)
- Detecting fraud
- Safeguarding financial interests
- Encouraging embezzlement
What type of evidence is obtained by an auditor for an Assurance Engagement?
What type of evidence is obtained by an auditor for an Assurance Engagement?
What is one of the elements of an Assurance Engagement?
What is one of the elements of an Assurance Engagement?
What do auditors review when detecting fraud or error?
What do auditors review when detecting fraud or error?
What are some inherent limitations of audit as discussed in the text?
What are some inherent limitations of audit as discussed in the text?
What is the nature of financial reporting that poses a challenge to audit?
What is the nature of financial reporting that poses a challenge to audit?
How does a review engagement differ from an audit engagement?
How does a review engagement differ from an audit engagement?
Why may auditors face challenges in obtaining complete information during an audit?
Why may auditors face challenges in obtaining complete information during an audit?
Why is maintaining a balance between benefit and cost difficult in the context of financial statements?
Why is maintaining a balance between benefit and cost difficult in the context of financial statements?
What do auditors not have absolute assurance about in terms of financial statements?
What do auditors not have absolute assurance about in terms of financial statements?
