Which of the following is an accurate statement regarding presentation and disclosure?
A) Auditors generally set the risk as low that all required information may not be completely disclosed in the footnotes.
B) Audit tests performed in earlier audit phases provides sufficient appropriate evidence about contingent liabilities and subsequent events.
C) Auditors do not conduct tests of controls related to disclosures when the initial assessment of control risk is below maximum.
D) In phase IV (completing the audit), auditors evaluate whether the overall presentation of the financial statements and related footnotes complies with accounting standards.

Question

Quizplus · Accepted Answer

In phase IV of the audit, auditors evaluate whether the overall presentation of the financial statements and related footnotes complies with accounting standards. This includes ensuring that all required disclosures are included in the footnotes and that the disclosures are presented clearly and accurately. Option A is incorrect, as auditors cannot set the risk of non-disclosure to zero. Option B is incorrect, as contingency and subsequent events require special consideration and detailed testing. Option C is incorrect, as tests of controls related to disclosures are required regardless of the initial assessment of control risk.

Which of the Following Is an Accurate Statement Regarding Presentation