Auditing > QUESTIONS & ANSWERS > D215 – AUDITING|QUESTIONS WITH COORECT ANSWERS (All)

D215 – AUDITING|QUESTIONS WITH COORECT ANSWERS

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What is the objective of a financial statement audit? Correct Answer Provide financial statement users with an opinion by the auditor on whether the financial statements are presented fairly in accord ... ance with an applicable financial reporting framework Who are intended users of assurance services? Correct Answer Decision makers i.e. Investors Creditors Regulators What does "independent" mean in the context of assurance services? Correct Answer The person performing the service is not involved with the creation of the information & is objective in the evaluation of the information. What is an example of an "applicable financial reporting framework"? Correct Answer GAAP IFRS federal income tax basis of accounting What are the most common functions of the internal auditors? Correct Answer Evaluating and improving risk management Internal control procedures Elements of the governance process What are the three elements of an operational audit? Correct Answer Economy... Efficiency... Effectiveness... ...Of an organizations activities Who are the main users of company financial statements Correct Answer Current & potential investors Suppliers Customers Lenders Employees Governments General public Why might financial statement users demand an audit? Correct Answer Remoteness of the company (don't have direct access to company records), complexity of financial statements, competing incentives among management and users, and reliability of information [Show More]

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