A issuance of an unqualied auditors report indicates

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Unformatted text preview: statement audit? a. Materiality refers to the “material” from which audit evidence is developed. b. The higher the level at which the auditor assesses materiality, the greater the amount of evidence the auditor must gather. c. The lower the level at which the auditor assesses materiality, the greater the amount of evidence the auditor must gather. d. The level of materiality has no bearing on the amount of evidence the auditor must gather. LO 8 1-19 Which of the following is the most important reason for an auditor to gain an understanding of an audit client’s system of internal control over financial reporting? a. Understanding a client’s system of internal control can help the auditor assess risk and identify areas where financial statement misstatements might be more likely. b. Understanding a client’s system of internal control can help the auditor make valuable recommendations to management at the end of the engagement. c. Understanding a client’s system of internal control can help the auditor sell consulting services to the client. d. Understa...
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