CFA Practice Question

CFA Practice Question

A firm's financial audit ensures all of the following EXCEPT:
A. There are adequate controls and checks in place in its accounting systems.
B. The company is managing its risks within the guidelines specified in its charter.
C. There are no material errors or omissions in its financial reports and the management is not misstating its performance.
Explanation: It is not a financial audit function to check on the reasonableness of the risks undertaken by the institution.

User Contributed Comments 1

User Comment
nfressell2 Audits don't ensure or promise anything. There have been numerous unqualified opinions on misstated financials.
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