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Problem 1: The essence of a financial report audit is to
Select one:
A. Detect fraud
B. Examine individual transactions so that the auditor may certify as to their validity
C. Determine whether the client's financial reports are fairly stated.
D. Assure the consistent application of correct accounting procedures
Problem 2: Analytical procedures used in planning an audit should focus on identifying:
A. the various assertions that are embodied in the financial report
B. the predictability of financial data from individual transactions
C. material weaknesses in internal control
D. areas that may represent specific risk relevant to the audit
Financial Statement Analysis and Preparation
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T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
Computation of Free Cash Flow
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