Robert Carroll 000-07-3527 Auditing I Chapter 6 6-22 (Objective 6-6) The following questions deal with management assertions. Choose the best response. a. (3) Valuation and Allocation. b. (2) Completeness. c. (2) Completeness. 6-23 (Objectives 6-1, 6-3) Auditors provide “reasonable assurance” that the financial statements are “fairly stated, in all material respects.” Questions are often raised as to the responsibility of the auditor to detect material misstatements, including misappropriation of assets and fraudulent financial reporting. a. Reasonable assurance is a high, but not absolute, level of assurance that the financial statements are free of material misstatements. The concept of reasonable, but not absolute, assurance indicates that the auditor is not an insurer or guarantor of the correctness of the financial statements. Even so, an audit that is conducted in accordance with auditing standards may fail to detect a material misstatement. The auditor is only responsible for reasonable, but not absolute, assurance. Users should contain a high
You've reached the end of your free preview.
Want to read both pages?
- Spring '10
- Financial audit