The external auditor: Group of answer choices Tests the underlying transactions that form the basis of the financial statements. In this way, they may state that these statements show a true and fair view. Tests the underlying transactions that form the basis of the financial statements. In this way, they may ensure that these statements show a true and fair view. Tests the underlying transactions that form the basis of the financial statements. In this way, they may form an opinion on whether or not these statements show a true view. Tests the underlying transactions that form the basis of the financial statements. In this way, they may form an opinion on whether or not these statements show a true and fair view.

Analytical procedures are one of many financial audit processes which help an auditor understand the client's business and changes in the business. The analytical procedures may be classified as being primarily:  Select one: a. Reasonable tests.  b. Detailed tests of balances. c. Substantive tests. d. Tests of control.

2. To express an opinion on financial statements, the auditor obtains reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. Select one:TrueFalse

The reporting principle requires auditors to express their opinion through the issuance of a written report. Required: a. What is the purpose of the. auditors' opinion and report? b. What are the major sections in the auditors' report on the examination of an issuer? What are the major contents of each of these sections? c. What are the four types of opinions that auditors can issue? d . How does the concept of materiality influence the auditors' report?

Management's assertions in the financial statements are of relevance to the audit process because a. they are the procedures that will be performed by the audit team. b. they are utilized by auditors in developing proper tests and procedures c. they are direct evidence that management  has prepared financial statements in accordance with GAAS. d. they relate more to the audit while the financial statenent belong to the author.

The auditor should consider audit risk when planning and performing an audit of financial statements. Audit risk should also be considered together in determining the nature, timing, and extent of auditing procedures and in evaluating the results of those procedures. Required: a. Define audit risk. b. Describe the components of audit risk (e.g., inherent risk, control risk, and detection risk). c. Explain how these components are interrelated. (AICPA, adapted)

Tests of controls in a GAAS audit are required fora. Obtaining evidence about the financial statement assertions.b. Accomplishing control over the occurrence of recorded transactions.c. Applying analytical procedures to financial statement balances.d. Obtaining evidence about the operating effectiveness of client control activities.

Explain the content of each section of the audit report and describe the types of opinions that an auditor can issue. Evaluate the importance of each section with respect to the users of financial reports.

Using the concept of justice, evaluate how an auditor would assess the equality of interests in the financial reporting process.

What type of audit objectively obtains and evaluates evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria? This type also communicates the results to interested users.