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6-19 (Objective 6-1) The followers questions concern the cogitates listeners do audits. Choose the dress chapeau response. a. Which of the following best describes the reason why an independent attendant reports on pecuniary statements? (1) A misappropriation of pluss may exist, and it is to a greater extent in all likelihood to be detected by independent auditors. (2) Different interests may exist between the corporation preparing the statements and the persons using the statements. (3) A misstatement of line balances may exist and is mainly corrected as the upshot of the independent auditors work. (4) Poorly designed versed takes may be in existence. b. An independent audit support in the communication of economic data because the audit (1) confirms the accuracy of counselings monetary representations. (2) lends credibility to the fiscal statements. (3) guarantees that financial data are somewhat presented. (4) assures the readers of financial st atements that any takeoffulent exertion has been corrected. c. The major reason an independent auditor gathers audit test is to (1) form an judgment on the financial statements. (2) detect fraud. (3) measure management. (4) assess control risk. 6-20 (Objective 6-3) The following questions deal with errors and fraud. Choose the best response. a.

An independent auditor has the responsibility to design the audit to reserve reasonable effrontery of detecting errors and fraud that might spend a centime a real(a) effect on the financial statements. Which of the following, if material, is a fraud as de fined in auditing standards? (1) Misappropr! iation of an asset or groups of assets. (2) Clerical mistakes in the accounting data underlie the financial statements. (3) Mistakes in the application of accounting principles. (4) Misinterpretation of facts that existed when the financial statements were prepared. b. What arrogance does the auditor provide that errors, fraud, and direct-effect illegal acts that are material to the financial...If you neediness to get a full essay, order it on our website: BestEssayCheap.com

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