24. Regarding the use of financial statements in security analysis and selection, it would be most accurate to say that: analysts can use footnotes and Management s Discussion and Analysis to better understand as- A) sumptions used in the financial statements. analysts can verify the accuracy of financial statements by using a firm s detailed accounting sys- B) tem information. further analysis of a firm s financial statements is typically not necessary if the firm has con- C) formed to applicable accounting principles.

24. Regarding the use of financial statements in security analysis and selection, it would be most accurate to say that: analysts can use footnotes and Management s Discussion and Analysis to better understand as- A) sumptions used in the financial statements. analysts can verify the accuracy of financial statements by using a firm s detailed accounting sys- B) tem information. further analysis of a firm s financial statements is typically not necessary if the firm has con- C) formed to applicable accounting principles.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process

Section: Chapter Questions

Problem 7RQSC: Professional guidance indicates that the auditor should consider revenue recognition to be high risk...

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Similar questions

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PLEASE ANSWER THIS ASAP. THANK YOU SO MUCH. 1.Which of the following statements is incorrect? a. Management assertions are implied or expressed representations by management about classes of transactions, account balances and presentation and disclosures contained in the financial statements. b. Transaction cycles may vary from one entity to another and may also be affected by the nature of industry of the client. c. The primary goal of an auditor in an audit is to issue an opinion that the financial statements of an entity are fairly stated, in all material respects, in accordance with the applicable financial reporting framework. d. Reasonable assurance is moderate but not absolute level of assurance that the financial statements are free from material misstatements. 2. Which of the following statements does not pertain to responsibilities of management and those in charge of governance? a. Establish and implement internal controls relevant to the preparation of financial reports.…
{Auditing} 15. Find the nature of materiality if the client incorrectly selects and applies accounting policy which has negligible effect in the current period but has significant effect on the future period. a. Material by nature b. None of the options c. Materiality by the amount for financial statements as a whole d. Either materiality by amount or materiality by nature