alleryStart learning →In an audit, the suitable criteria are usually what?
AThe auditor's preferences
BPrior year's earnings
CLaw and accounting standards
DManagement's own targets
Answer & Solution
Correct answer: C. Law and accounting standards
Criteria give an agreed framework to compare against, and for company accounts that is the mandated form under law and accounting standards.
Keep practising Assurance Services
Browse all Assurance Services questions for CA Final, or explore more Auditing topics.
Related questions
How long does ongoing FCPA due diligence on a relationship last?Due diligence has emerged as a separate profession for accounting experts, usually called Which US law made due diligence a legal term?A buyer examines a target company before a takeover. This is a common example of what?What does due diligence mean in general business usage?In forensic rating models, ratios weighted by coefficients to give an overall value are caWhy do forensic accountants use plain terms?The investigation of which gangster's finances is credited with showing the value of foren