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how an auditor should think while performing audit procedures.
objectives and procedures to be followed during the audit process.
46. Which one of the following is primary reason for documenting
audit work? (Points: 4)
to prevent litigation by other parties that question the audit
performance.
to provide a stand-alone medium that gives audit conclusions and
supports the opinion.
to supply a point of reference for all auditors performing the work
subsequently.
to supply a point of reference for all auditors performing the work
subsequently.
47. Which of the following would most likely be considered intentional
misapplication of accounting principles on financial statements?
(Points: 4)
A capital lease is presented as periodic rent expense rather than
interest and depreciation.
A deferred tax asset is reduced to zero with a valuation allowance.
A stock option is expensed even though the fair value of the
underlying stock on the date of grant was the same as the option's
exercise price.
Revenues for up-front fees are deferred rather than recognized
immediately.
48. The audit of financial statements includes the initial approach of
addressing fraud. How must an auditor address fraud in the planning
stage? (Points: 4)