The role of the auditor in the American economy has changed over the years in response to changes in our economic and political institutions. Consequently, the nature of an audit today is quite different from that of an audit performed in the year 1900. Classify the following phrases into two groups:
(1) Phrases more applicable to an audit performed in 1900
(2) Phrases more applicable to an audit performed today.
a. Complete review of all transactions.
b. Assessment of internal control.
c. Auditors' attention concentrated on balance sheet.
d. Emphasis upon use of sampling techniques.
e. Determination of fairness of financial statements.
f. Audit procedures to prevent or detect fraud on the part of all employees and managers.
g. Registration statement.
h. Fairness of reported earnings per share.
i. Influence of stock exchanges and the investing public upon use of independent auditors.
j. Concern about fraudulent financial reporting.
k. Generally accepted auditing standards.
l. Bankers and short-term creditors as principal users of audit reports.
m. Pressure for more disclosure.
n. Auditing for compliance with laws and regulations.