Introduction to Audit Services and Financial Statement Audit

Question 1

[True/False]

Auditors serve numerous parties, but most importantly is the public, as exemplifies by investors, creditors and other stakeholders.

Answer 1

True

Question 2

[True/False]

External auditors enhance credibility of information by helping the management in preparing the financial statements and designing and implementing internal controls.

Answer 2

False, it is the internal auditors

Question 3

[True/False]

Assertions are representations made by an audit client, explicit or otherwise, about economic actions and events.

Answer 3

True

Question 4

[True/False]

Providers of external audits and internal audits are both independent from the management which allows them to perform financial statements audit.

Answer 4

False, it’s only the providers of external audits

Question 5

[True/False]

The overall objective of the auditor in financial statements audit is to have an opinion on whether the financial statements are prepared, in all material respects, in accordance with the criteria.

Answer 5

True