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Questions and Answers
In an assurance-based engagement, what is one of the elements according to the 3SECC framework?
In an assurance-based engagement, what is one of the elements according to the 3SECC framework?
- Compliance with the Code of Ethics for Professional Accountants
- Effective internal control system
- Consistent application of the applicable financial reporting framework
- Three-party relationship (correct)
What is a general principle of a financial statement audit according to the text?
What is a general principle of a financial statement audit according to the text?
- Comply with the Code of Ethics for Professional Accountants
- Maintain an attitude of professional skepticism (correct)
- All financial data are verifiable
- Audit benefits the public
According to the theoretical framework of auditing, what does the consistent application of the applicable financial reporting framework result in?
According to the theoretical framework of auditing, what does the consistent application of the applicable financial reporting framework result in?
- Reduction in fraud and error
- Long term conflict between auditor and client management
- Fair presentation of the financial statements (correct)
- Verifiability of all financial data
What does the auditor need to obtain in an audit, as per the general principles mentioned in the text?
What does the auditor need to obtain in an audit, as per the general principles mentioned in the text?
What is a benefit of an effective internal control system in auditing?
What is a benefit of an effective internal control system in auditing?
What are the inherent limitations of audit related to?
What are the inherent limitations of audit related to?
What is the threshold for total assets or total liabilities that would require an entity to submit audited financial statements as a non-stock corporation?
What is the threshold for total assets or total liabilities that would require an entity to submit audited financial statements as a non-stock corporation?
What type of opinion would be given if financial statements contain material misstatements?
What type of opinion would be given if financial statements contain material misstatements?
What are the factors to consider when deciding whether to send a separate engagement letter to a component?
What are the factors to consider when deciding whether to send a separate engagement letter to a component?
What are the considerations in accepting an audit?
What are the considerations in accepting an audit?
