Question 24Which of the following is true regarding the auditor's responsibility related to reporting? Sufficient appropriate evidence should be obtained to afford a reasonable basis for the opinion regarding financial statements under audit. The audit opinion relates only to the client's financial statements, and does not relate to required footnotes. If the auditor has reservations about the fairness of presentation of the financial statements, the auditor does not need to provide the reason for this reservation. All of the statements provided are true.

The auditor's responsibilities revolve around ensuring that financial statements are presented fairly, which can only be accomplished by acquiring relevant evidence as the basis for producing an audit opinion.An audit report includes a paragraph on the auditor's role, which states that adequate evidence has been obtained on behalf of the auditor to develop an opinion on the financial statements given by the Company. Explanation The auditor's responsibilities revolve around ensuring that financial statements are presented fairly, which can only be accomplished by acquiring relevant evidence as the basis for producing an audit opinion. An audit report includes a paragraph on the auditor's role, which states that adequate evidence has been obtained on behalf of the auditor to develop an opinion on the financial statements given by the Company. The Securities and Exchange Commission wants companies and their auditors to give investors with timely financial information while also giving sufficient time to compile adequate audit evidence. Correct answer is Option (a)auditor's responsibility related to reportingHence, auditor's responsibility related to reporting regarding Sufficient appropriate evidence should be obtained to afford a reasonable basis for the opinion regarding financial statements under audit.

Answered: ned to afford a reasonable basis for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question 24

Which of the following is true regarding the auditor's responsibility related to reporting?

		Sufficient appropriate evidence should be obtained to afford a reasonable basis for the opinion regarding financial statements under audit.
		The audit opinion relates only to the client's financial statements, and does not relate to required footnotes.
		If the auditor has reservations about the fairness of presentation of the financial statements, the auditor does not need to provide the reason for this reservation.
		All of the statements provided are true.

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