Mastering the Basics of Auditing

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Questions and Answers

Who should perform an audit?

Any person with knowledge of accounting
The person responsible for recording economic events
A person with verifiable information
An independent and competent person (correct)

Which of the following best describes auditing?

Determining the degree of correspondence between information and criteria (correct)
Classifying financial information
Recording and summarizing economic events
Providing evidence about information

What is evidence in auditing?

The financial information used in decision making
The economic events that occurred during the accounting period
The information that is recorded and summarized
Any information used by the auditor to evaluate the information being audited (correct)

What is the importance of auditing in reducing information risk?

Auditing can have a significant impact on information risk (C) Signup and view all the answers

How does auditing differ from accounting?

Auditing involves determining whether recorded information reflects economic events, while accounting involves providing financial information for decision making (D) Signup and view all the answers