State with reasons (in short) whether the following statements are correct or incorrect (a) The terms of audit engagement can restrict the scope of an audit. · (b) It is the function of an audit to establish that payments have been made validly to the persons who are shown to be recipients. (c) Letter of Representations received from Management relieve the auditors of their responsibility.
State with reasons (in short) whether the following statements are correct or incorrect (a) The terms of audit engagement can restrict the scope of an audit. · (b) It is the function of an audit to establish that payments have been made validly to the persons who are shown to be recipients. (c) Letter of Representations received from Management relieve the auditors of their responsibility.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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State with reasons (in short) whether the following statements are correct or incorrect
(a) The terms of audit engagement can restrict the scope of an audit. ·
(b) It is the function of an audit to establish that payments have been made validly to the
persons who are shown to be recipients.
(c) Letter of Representations received from Management relieve the auditors of their
responsibility.
(d) Stratified sampling method involves dividing the whole population to be tested in a few
separate groups.
(e) There is a very thin difference between advocacy threats and intimidation threats to an auditor while performing his duty
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