ACCT4281- Auditing2

Evaluate the following independent statements and state whether they are true or false;

a) Cash balances do not normally show a stable or predictable relationship with other

current or historical financial or operating data. As a result, the auditor will often not

perform any analytical review procedures in this part of the audit.

b) Generally, the further into the future an event is likely to take place, the greater the

uncertainty surrounding the event.

c) An error is an intentional misstatement in the client's financial statements.

d) The auditor's responsibility for the financial statements includes selecting and applying

appropriate accounting policies.

e) An unqualified audit report with an emphasis of matter should be issued if a subsequent

event has occurred that has resulted in a new audit report being prepared on a revised

financial statement.