ACC 562 EDU Education Terms/acc562edu.com ACC 562 EDU Education Terms/acc562edu.com | Page 7

assess the risk of possible misstatements in the financial
statements.
27. For an auditor to be independent, he or she must be independent
in (Points: 4)
fact.
appearance.
fact and appearance.
either fact or appearance.
28. An auditor is concerned with materiality for which of the following
reasons? (Points: 4)
to assess internal control
to comply with the quality assurance standards of GAAS
to determine the effects of misstatements on the users of financial
information
to cut down on audit procedures and testing
29. A proper system of corporate governance is one that demands
(Points: 4)
decision making by auditors in place of management.
internal audit representation on the board of directors.
audit planning to obtain competent and sufficient audit evidence.
accountability back through the system to the shareholders.