The Audit Process Can Be Viewed as Having Two Stages

Multiple Choice

The audit process can be viewed as having two stages.Which of the following statements regarding these stages is FALSE?

A) The two stages reflect the two major categories of audit report reservations: accounting deficiency reservations based on stage one,and audit deficiency reservations based on stage two.
B) The distinction between audit and accounting uncertainties is critical for audit report reservations.
C) Stage one deals with audit evidence uncertainties,those related to the amount of evidence gathered.
D) In stage two,the auditor uses the evidence obtained in stage one to make a determination of the appropriateness of financial reporting relative to GAAP and fairness of presentation criteria.