In conducting an audit of financial statements, the overall objectives of the auditor are:I : To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, thereby enabling the auditor to express an opinion on whether the financial statements are prepared, in all material respects, in accordance with an applicable financial reporting framework;II : To report on the financial statements, and communicate as required by the PSAs, in accordance with the auditor's findings.Select one:a.Both I and IIb.Neither I nor IIc.II onlyd.I only
Question
In conducting an audit of financial statements, the overall objectives of the auditor are:I : To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, thereby enabling the auditor to express an opinion on whether the financial statements are prepared, in all material respects, in accordance with an applicable financial reporting framework;II : To report on the financial statements, and communicate as required by the PSAs, in accordance with the auditor's findings.Select one:a.Both I and IIb.Neither I nor IIc.II onlyd.I only
Solution
The overall objectives of the auditor in conducting an audit of financial statements are as follows:
I: To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error. This allows the auditor to express an opinion on whether the financial statements are prepared, in all material respects, in accordance with an applicable financial reporting framework.
II: To report on the financial statements and communicate as required by the PSAs (Professional Standards on Auditing) in accordance with the auditor's findings.
Based on the given options, the correct answer is:
a. Both I and II
Similar Questions
The financial statements subject to audit are those of the entity, prepared and presented by external auditors of the entity with oversight from the managementSelect one:TrueFalse
The purpose of an audit of financial statements is to
In order to form that opinion, the auditor shall conclude as to whether the auditor has obtained reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error.Select one:TrueFalse
Auditing enables the auditor to express an opinion whether the financial statements are prepared, in all material respects, in accordance with an identified financial reporting framework.Select one:TrueFalse
As the basis for the auditor’s opinion, PSAs require the auditor to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error.Select one:TrueFalse
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.