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1-14 Which of the following best describes the reason why an independent
auditor is often retained to report on ﬁnancial statements?
a. Management fraud may exist, and it is more likely to be detected by
independent auditors than by internal auditors.
b. Different interests may exist between the entity preparing the statements and the persons using the statements, and thus outside assurance
is needed to enhance the credibility of the statements.
c. A misstatement of account balances may exist, and all misstatements
are generally corrected as a result of the independent auditor’s work.
d. An entity may have a poorly designed internal control system. 26/05/11 9:24 PM Conﬁrming Pages 28 Part 1 Introduction to Assurance and Financial Statement Auditing LO 4 1-15 Which of the following best describes relationships among auditing, attest,
and assurance services?
a. Attest is a type of auditing service.
b. Auditing and attest services represent two distinctly different types of
c. Auditing is a type of assurance service.
d. Assurance is...
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This note was uploaded on 12/08/2012 for the course ACCT 564 at Washington University in St. Louis.