1 Statements Answer When CPAS are associated with 1. the CPAS' services and believe that the accountants are acting as auditors. a possibility exists that the client may misinterpret the extent of Under the Securities Act of 1933, initial purchasers of securities may sue the auditors for misleading audited 2. financial statements and need not prove that they relied on the financial statements. The burden of proof is on the auditors to prove that they were in the performance of their work. 3. Unwritten law that has developed through court decisions is referred to as 4. When damage to another is directly attributable to a wrongdoer's act, is said to exist. of financial statements involves the performance of limited investigative procedures that provide A 5. a basis for the expression of limited assurance that there are no material departures from generally accepted accounting principles.

1 Statements Answer When CPAS are associated with 1. the CPAS' services and believe that the accountants are acting as auditors. a possibility exists that the client may misinterpret the extent of Under the Securities Act of 1933, initial purchasers of securities may sue the auditors for misleading audited 2. financial statements and need not prove that they relied on the financial statements. The burden of proof is on the auditors to prove that they were in the performance of their work. 3. Unwritten law that has developed through court decisions is referred to as 4. When damage to another is directly attributable to a wrongdoer's act, is said to exist. of financial statements involves the performance of limited investigative procedures that provide A 5. a basis for the expression of limited assurance that there are no material departures from generally accepted accounting principles.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.

Question

Select the necessary words from the list of possibilities to complete the following statements.
1
Statements
Answer
When CPAS are associated with
1.
the CPAS' services and believe that the accountants are acting as auditors.
a possibility exists that the client may misinterpret the extent of
Under the Securities Act of 1933, initial purchasers of securities may sue the auditors for misleading audited
2.
financial statements and need not prove that they relied on the financial statements. The burden of proof is on
the auditors to prove that they were
in the performance of their work.
3.
Unwritten law that has developed through court decisions is referred to as
4.
When damage to another is directly attributable to a wrongdoer's act,
is said to exist.
of financial statements involves the performance of limited investigative procedures that provide
a basis for the expression of limited assurance that there are no material departures from generally accepted
accounting principles.
5.

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Audit procedures for items of Financial Statement

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