Which of the following statement best describes the understanding with respect to ownership and custody of working papers prepared by an auditor?

Related Mcqs:

Test Checking refers to___________?

A. Testing of accounts and records B. Checking of selected number of transactions C. Examination of adjusting and closing entries D. Checking of all transactions recorded...

______the audit risks_______the materiality and_________the audit effort.

A. Lower, Higher, Lower B. Lower, Lower, Higher C. Higher, Lower, Lower D. Lower, Higher, Higher...

When issuing unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the___________?

A. Amount of known misstatement is documented in working papers B. Estimates of the total likely misstatement is less than materiality level C. Estimate of the total likely misstatement is more than materially level D. Estimates of the total likely misstatement cannot be made...

Which of the following is not corroborative evidence?

A. Minutes of meetings B. Confirmations from debtors C. Information gathered by auditor through observation D. Worksheet supporting consolidated financial statements...

What would most appropriately describe the risk of incorrect rejection in terms of substantive testing?

A. The auditor concludes balance is materially correct when in actual fact it is not B. The auditor concludes that the balance is materially misstated when in actual fact it not C. The auditor has rejected an item for sample which was material D. None of the above...