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Questions and Answers
What is the main objective of a financial statement audit?
What is the main objective of a financial statement audit?
- Determine the economic actions and events of a business
- Add credibility to the financial position and performance (correct)
- Provide assurance on financial statements free from material error
- Evaluate evidence to ensure accuracy of information
What is the key difference between auditing and accounting?
What is the key difference between auditing and accounting?
- Accounting involves objective evaluation, auditing involves subjective opinion
- Accounting deals with financial data, auditing deals with fraud detection
- Accounting focuses on providing assurance, auditing focuses on financial statement preparation
- Auditing involves objectively obtaining and evaluating evidence, accounting involves accumulating data (correct)
What is the primary role of an internal auditor?
What is the primary role of an internal auditor?
- Accumulating and evaluating evidence for economic actions
- Evaluating information for correspondence with establish criteria
- Providing assurance on financial statements
- Detecting and preventing fraud within the organization (correct)
Which type of auditor focuses on ensuring adherence to organizational procedures and policies?
Which type of auditor focuses on ensuring adherence to organizational procedures and policies?
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What is the main purpose of an operational audit?
What is the main purpose of an operational audit?
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In auditing, what does 'reasonable assurance' refer to?
In auditing, what does 'reasonable assurance' refer to?
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Which type of auditor focuses on investigating financial irregularities or suspected fraud?
Which type of auditor focuses on investigating financial irregularities or suspected fraud?
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What is the primary difference between an external auditor and an internal auditor?
What is the primary difference between an external auditor and an internal auditor?
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What is the primary focus of a forensic auditor?
What is the primary focus of a forensic auditor?
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What does an operational audit mainly focus on?
What does an operational audit mainly focus on?
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