Which one of the following is false regarding the adequacy of disclosures in a financial statement audit?
A)The auditor should consider matters for disclosure while gathering evidence during the course of the audit,not just at the end of the audit.
B)One of the key disclosures is a summary of significant accounting policies used by the company.
C)Disclosures should be limited to only checklist items.
D)The auditor's report does not specifically cover the statements made by management in the "Management Discussion and Analysis" (MD&A)section of the annual report.

Question

Quizplus · Accepted Answer

Disclosures should not be limited to only checklist items. The auditor should exercise professional judgment to determine the adequacy of disclosures based on the financial statements and the relevant accounting standards. Therefore, option C is false. The other options are true statements about the adequacy of disclosures in a financial statement audit.

Which One of the Following Is False Regarding the Adequacy