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Unformatted text preview: Unqualified c. Full assurance d. Exceptional 4. The study and practice of auditing is unlike other areas in accounting because it: a. Requires the memorization of formulas and patterns b. Requires the knowledge of GAAP c. Requires common sense and some creativity d. Is required by law for all companies in the United States 5. Audit risk: a. Can be completely eliminated through appropriate sampling of transactions b. Is the risk that a ‘clean’ opinion will be issued when, in reality, the financial statements are materially misstated c. Is what creates the demand for an audit d. Is the risk that a company may hire an incompetent auditor...
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- Spring '12
- Valuation, following audit phases, a. Auditing business