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NEW QUESTION: 1
Which of the following statements is correct concerning an auditor's responsibilities regarding financial
statements?
A. Making suggestions that are adopted about an entity's internal control environment impairs an auditor's
independence.
B. An auditor may not draft an entity's financial statements based on information from management's
accounting system.
C. An auditor's responsibilities for audited financial statements are confined to the expression of the
auditor's opinion.
D. The adoption of sound accounting policies is an implicit part of an auditor's responsibilities.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Choice "C" is correct. An auditor's responsibility is to express an opinion on financial statements based on
an audit.
Choice "A" is incorrect. An auditor may draft an entity's financial statements based on information from
management's financial system. This would be referred to as a compilation engagement.
Choice "B" is incorrect. The adoption of sound accounting policies is an implicit part of management's
responsibilities, not the auditor's responsibilities.
Choice "D" is incorrect. An auditor often makes suggestions that are adopted about an entity's internal
control environment.

NEW QUESTION: 2
Refer to the information below to answer the question.
An organization experiencing a negative financial impact is forced to reduce budgets and the number of Information Technology (IT) operations staff performing basic logical access security administration functions. Security processes have been tightly integrated into normal IT operations and are not separate and distinct roles.
Which of the following will MOST likely allow the organization to keep risk at an acceptable level?
A. Removing privileged accounts from operational staff
B. Increasing the amount of audits performed by third parties
C. Separating the security function into distinct roles
D. Assigning privileged functions to appropriate staff
Answer: D

NEW QUESTION: 3
According to SAB 104, for the revenue to be typically considered realized or realizable and earned, which of the following criteria is NOT met:
A. Collectability is reasonably assured
B. Persuasive evidence of an arrangement exists
C. Services has been rendered
D. Timings have been met
Answer: D

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