Workshop 1.3 Chapter 1 – Multiple Choice Questions 1-13An independent audit adds value to the communication of financial information because the audit a. Confirms the exact accuracy of management’s financial representations. b. Lends credibility to the financial statements.c. Guarantees that financial data are fairly presented. d. Assures the readers of financial statements that any fraudulent activity has been corrected. 1-14Which of the following best describes the reason why an independent auditor is often retained to report on financial statements? 1-15 Which of the following best describes relationships among auditing, attest, and assurance services?
1-16 Which of the following statements relating to attest and assurance services is not correct? 1-17 For what primary purpose does the auditor obtain an understanding of the entity and its environment? a. To determine the audit fee. b. To decide which facts about the entity to include in the audit report. c. To plan the audit and determine the nature, timing, and extent of audit procedures to be performed. d. To limit audit risk to an appropriately high level.
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