Which of the following best describes the reason why an independent auditorreports on financial statements?(1) A misappropriation of assets may exist, and it is more likely to be detected byindependent auditors.(2) Different interests may exist between the company preparing the statementsand the persons using the statements.(3) A misstatement of account balances may exist and is generally corrected as theresult of the independent auditor’s work.(4) Poorly designed internal controls may be in existence

Q: Why are receivables and revenue ripe areas for abuse or outright fraud? Income tax rules have been…

A: Receivables and revenue are ripe areas for abuse or outright fraud as no real event such as actual…

Q: Which one of the following statements is not included in the management representation letter…

A: The management representation letter is a document provided by the management of a company to the…

Q: n auditor does not need to test the effectiveness of automated controls in a computerized system.…

A: Auditors are responsible are maintaining the account and checking accounts and checking accuracy of…

Q: Auditors of financial statements are designed to obtain reasonable assurance of detecting material…

A: The auditor is required to obtain reasonable assurance that financial statements aa a whole are free…

Q: Why is it important for auditors to consider the possibility of fraud by employees or management on…

A: There is a possibility of the occurrence of fraud by the employees or management of the company.…

Q: he factor that distinguishes an error from fraud or other irregularities is A) materiality. B)…

A: Lets understand the basics. Audit is an examination of book of account in order to give an opinion…

Q: Question: Which of the following statements accurately describes a fraud detection technique in…

A: Fraud detection techniques are  styles, procedures, and instruments used by  individualities,…

Q: t is generally acceptable for analytical procedures to be the only audit procedure used to test…

A: solution concept analytical procedure               Analytical procedure used as a audit procedure…

Q: Which of the following is least likely to be required on an audit?    Evaluate the business…

A: Which of the following is least likely to be required on an audit?    1. Evaluate the business…

Q: An auditor must identify the relevant assertions about each significant financial statement account…

A: a.