Explain why the auditor can be persuaded only with a reasonable level of assurance, rather than convinced, that the financial statements are correct

Auditors must use their professional judgment_ O to distinguish if a misstatement or scope limitation is just material or pervasively material O to distinguish if a misstatement or scope limitation is just immaterial or pervasively material O to determine if the firm has the ability to pay the auditor for services rendered O in selecting the client's audit committee

Auditor observations are not considered as audit evidence A. True B. False

KA  In order to form an opinion, the auditor shall conclude as to whether the auditor has obtained reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. The conclusion should consider and take into account:   answer the below in essay form   The evaluation of the financial statements as a whole should include what other significant elements and requirements are needed to formulate an auditor's report.

Sufficient and appropriate evidence is the focus of the third field work standard. * O True O False When the auditor concludes that there is substantial doubt about an entity's ability to continue as a going concern, the auditor should consider the possible effects on the financial statements and the related disclosures. O True False

The audit procedure used for a substantive test determines whether an auditor identifies a factual or judgmental misstatement. True False

Which of the following presumptions does NOT relate to the reliability of evidence? A. the more effective the internal control structure, the more assurance it provides about the accounting data and financial statements. B.an auditor's opinion, to be economically useful, is formed within reasonable time and based on evidence obtained at a reasonable cost. C. evidence obtained from independent sourcesoutside the entity is more persuasive than evidence secured solely within the entity. D. the independent auditor's direct personal knowledge, obtained through observation and inspection, is more persuasive than information obtained indirectly.

If the auditor determines that an internal control deficiency is either a significant deficiency or a control deficiency, the auditor will issue a/an _______ on internal controls over financial reporting (ICFR)   A. adverse opinion   B. unmodified opinion   C. unqualified opinion   D. modified opinion

Which of the following statements is NOT correct about materiality?Select one:   a. Auditor’s consideration of materiality is influenced by the auditor’s perception of the needs of an informed decision maker who will rely on the financial statements b. Materiality is a relative concept c. Materiality judgments involve both quantitative and qualitative judgments d. At the planning state, the auditor considers materiality at the financial statement level only