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Unformatted text preview: ements an auditor tests only a
sample of transactions that occurred.
1-9 What are the major phases of an audit?
1-10 The auditor’s understanding of the entity and its environment should
include knowledge of which categories of information?
1-11 Identify the four paragraphs of the auditor’s standard unqualiﬁed report
for a public company client.
1-12 Brieﬂy discuss why auditors must often exercise creativity and innovation
in auditing ﬁnancial statements. Give an example different from the one
offered in the text. M ULTIPLE-CHOICE QUESTIONS
All applicable questions are available with McGraw-Hill’s Connect™ Accounting.
LO 2,3,5 LO 2,3,5 mes25435_ch01_001-032.indd
mes25435_ch01_001-032.indd 27 1-13 An independent audit aids in the communication of economic data because
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 corre...
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This note was uploaded on 12/08/2012 for the course ACCT 564 at Washington University in St. Louis.