Audit

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What is the primary role of an auditor?

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To provide an independent assessment of the accuracy of financial statements.

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What does 'independence' mean in auditing?

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The auditor's ability to remain unbiased and objective in their evaluation.

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What is 'Financial Statement Fraud'?

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A type of fraud that involves misrepresenting financial information to investors.

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What are Special Purpose Entities (SPEs)?

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Entities created to isolate financial risk, often used in financial scandals to hide debt.

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What is the significance of 'integrity' in auditing?

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It refers to the auditor's commitment to honesty and ethical behavior.

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What does 'confidentiality' mean in the context of auditing?

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The obligation to protect sensitive information obtained during the audit process.

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What is the difference between internal and external auditors?

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Internal auditors work within the organization to assess risk and control, while external auditors are independent and evaluate the financial statements.

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What is the purpose of an audit?

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To provide assurance that financial statements are free from material misstatement.

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What is 'Asset Misappropriation'?

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A type of fraud where an employee steals or misuses the organization's assets.

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What is the role of the audit committee?

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To oversee the financial reporting process and the audit function.