Which of the following statements is not true of the auditors' report? A It provides an...

Which of the following statements is not true of the auditors' report?

A	It provides an independent, professional opinion on the financial statements.

B	It confirms that appropriate accounting policies were followed.

C	The auditor guarantees that the financial statement information is accurate.

D	It does not conclude on whether the company is a good or bad investment.

Solutions

Expert Solution

Auditing is an independent examination of an financial statement of an entity irrespective of its size,legal form and such examination is conducted to express an opinion on the financial statement

Hence as per the statement option a is true

While examination of financial statement he should check whether financial statement is as per law and whether follow appropriate accounting policies,if he satisfied regarding whether organisation follow appropriate accounting policies then he will unmodified opinion otherwise he will issue modified opinion

Hence option B is true

Majority of the audit work based on sampling

Hence auditor may or may not examine each and every transaction..hence he doesn't give guarantee that the financial statement is correct and accurate

Hence option C is not true

Auditor has duty to express his opinion on financial statement and auditor doesn't have responsibility to conclude whether company is good or bad

Hence option D is true

Conclusion:as per Question requirement we have choose a statement as not true

Hence option C is correct

ekkarill92 answered 1 year ago

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