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Questions and Answers
What is the primary role of auditors when they perform the assurance function?
What is the primary role of auditors when they perform the assurance function?
- Detecting fraud and embezzlement in a company
- Performing a program results audit in a government agency
- Lending credibility to an auditee’s financial statements
- Lending credibility to a client’s financial statements (correct)
In the scenario provided, who is considered the client for the audit conducted by Sampson & Delila, CPAs?
In the scenario provided, who is considered the client for the audit conducted by Sampson & Delila, CPAs?
- Megabank (correct)
- Company B
- Company A
- Sampson & Delila
According to CPA Canada, what is the main purpose of conducting an audit of financial statements?
According to CPA Canada, what is the main purpose of conducting an audit of financial statements?
- Ensuring compliance with tax regulations
- Providing an opinion on the fairness of financial statements in accordance with accounting standards by the FASB
- Assessing the market value of the company
- Providing an opinion on the fairness of financial statements in accordance with accounting principles (correct)
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Study Notes
Assurance Function of Auditors
- The primary role of auditors is to perform the assurance function, which involves providing an independent opinion on the fairness and accuracy of financial statements.
Client Identification
- In the scenario provided, the client for the audit conducted by Sampson & Delila, CPAs is the entity whose financial statements are being audited.
Purpose of Audit
- According to CPA Canada, the main purpose of conducting an audit of financial statements is to provide an independent opinion on whether the financial statements are presented fairly and in accordance with the applicable financial reporting framework.
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