There are four conditions that give rise to
the need for independent audits of
financial statements. One of these
conditions is consequence. In this context,
consequence means that the:
a. Users of the statements may not fully
understand the consequences of their
actions.
b. Auditor must anticipate all possible
consequences of the report issued.
c. Impact of using different accounting
methods may not be fully understood
by the users of the statements.
d. Financial statements are used for
important decisions
the need for independent audits of
financial statements. One of these
conditions is consequence. In this context,
consequence means that the:
a. Users of the statements may not fully
understand the consequences of their
actions.
b. Auditor must anticipate all possible
consequences of the report issued.
c. Impact of using different accounting
methods may not be fully understood
by the users of the statements.
d. Financial statements are used for
important decisions