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internal control over financial reporting
financial statements and disclosures
26. The financial statement auditor must understand the client's
internal control as a component of the fieldwork standards. The one of
the reason for this understanding is so that the auditor may (Points: 4)
provide individual comments on internal control non-compliance.
become comfortable that the client will pay its audit bills.
assess materiality.
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