Question

Which of the following is false regarding the use of an audit checklist for disclosures?

a. It is a convenient documentation format.

b. It reminds the auditor of matters that should be considered for disclosure.

c. It can be organized to include relevant professional guidance.

d. It covers all potential unusual circumstances.

Answer 1

An audit checklist for disclosures is a useful tool for auditors, but it cannot cover all potential unusual circumstances.

Step-by-step explanation:

The false statement regarding the use of an audit checklist for disclosures is option d. It covers all potential unusual circumstances. An audit checklist is a tool used by auditors to ensure that all required disclosures are included in financial statements. While it can be a convenient documentation format, remind the auditor of matters for disclosure, and incorporate relevant professional guidance, it cannot cover all potential unusual circumstances as these can vary depending on the specific audit.