45. The purpose of conducting an audit of financial statements is to: A) ensure that all possible errors in the financial statements are corrected prior to their issuance B) provide financial statement users with an opinion on whether the financial statements are presented fairly, in all material respects, in accordance with applicable financial accounting framework C) ensure the continued existence and profitability of the public accounting profession D) make both the independent auditor and company management responsible for the fairness of the financial statements 46. Which of the following best describes the auditor's responsibility regarding the detection of non-compliance with laws and regulations that would have an indirect effect on the financial statements? A) The auditor should inquire of management about whether the entity is in compliance with such laws and regulations. B) The auditor has a responsibility to obtain reasonable assurance as to whether any violations of these laws or regulations has occurred. C) The auditor should perform the same procedures the auditor would perform to detect non-compliance with laws and regulations that have a direct effect on the financial statements. D) The auditor does not need to investigate possible non-compliance that the auditor is aware of because the non- compliance can only have an indirect effect on the financial statements. 47. The posting and summarization audit objective is one of the auditor's counterparts to management's assertion of: A) occurrence B) completeness C) cutoff D) accuracy 48. Because fraudulent financial reporting is difficult to detect, auditors do not have a responsibility to plan and perform the financial statement audit to try to detect it. A) True B) False 49. In testing for cutoff, the objective is to determine: A) whether all of the current period's transactions are recorded B) whether transactions are recorded in the correct accounting period C) the proper cutoff between capitalizing and expensing expenditures D) the proper amounts for each transaction recorded in the current period 50. Professional skepticism must be exercised only if the auditor suspects fraud. A) True B) False