The Fundamentals of Auditing

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Questions and Answers

What does compliance testing focus on in auditing?

  • Evaluation of internal control (correct)
  • Obtaining and evaluating evidence
  • Communicating the results to interested parties
  • Rendering opinion about financial statements

What is the primary purpose of substantive testing in auditing?

  • To render an opinion about financial statements (correct)
  • To obtain and evaluate evidence
  • To evaluate internal control
  • To communicate the results to interested parties

In auditing, what requires judgment on the auditor's part?

  • Obtaining and evaluating evidence
  • Determining non-compliance (correct)
  • Evaluating internal control
  • Communicating the results to the client

What is the auditor concerned about in relation to evidence in auditing?

<p>Reliability of the system of internal control (D)</p> Signup and view all the answers

What characterizes the systematic process in auditing?

<p>It is structured as a dynamic activity in a logical manner (B)</p> Signup and view all the answers

What is the primary focus of compliance testing in auditing?

<p>Evaluating internal control (B)</p> Signup and view all the answers

In auditing, what does substantive testing primarily aim to assess?

<p>Reliability of financial statements (C)</p> Signup and view all the answers

What is the key aspect of the systematic process in auditing?

<p>Structured as a dynamic activity (D)</p> Signup and view all the answers

What does the auditor's judgment play a crucial role in, regarding non-compliance in auditing?

<p>Determining what constitutes non-compliance (C)</p> Signup and view all the answers

What is the ultimate purpose of communicating the results in auditing?

<p>To the client and other interested parties (C)</p> Signup and view all the answers

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