Multiple Choice
Which of these statements is true?
An audit benefits a company because
A) It reassures the shareholders that the accounts are accurate
B) Makes the management accountable to the shareholders
C) Guarantees that the accounts are free from fraud or error
D) Guarantees that the financial information shown is true and fair
Correct Answer:
Verified
Correct Answer:
Verified
Q8: Outline the relationship between audit risk, materiality
Q9: Explain the purpose of a 'hot' review
Q10: Set out the rights and duties of
Q11: State the advantages and disadvantages of a
Q12: Briefly describe three audit strategies
Q14: List two ways in which analytical procedures
Q15: State whether the following statements are true
Q16: List five threats to auditor independence and
Q17: Explain the responsibilities of<br>-the directors<br>-the auditors<br>in connection
Q18: What are the preconditions for an audit?