Discussion board post for my auditing class: Think about this: assets equal liabilities plus equity. This...

Discussion board post for my auditing class:

Think about this: assets equal liabilities plus equity. This is the balance sheet and if it balances, and you’ve audited it, then the income statement must be reasonably stated. Right? What’s the point in auditing the income statement if you’ve audited everything else on the balance sheet – and it all balances. In fact, you’ve probably noticed that the focus of all the audit work we’ve studied has been on the balance sheet. Please consider and discuss the reasons why we perform audit procedures on the income statement. Please write an articulate, thoughtful response to the question above. This response should be 200-250 words in length.

Expert Solution

ekkarill92 answered 4 months ago

Think about this: assets equal liabilities plus equity. This is the balance sheet and if it...

Think about this: assets equal liabilities plus equity. This is the balance sheet and if it balances, and you’ve audited it, then the income statement must be reasonably stated. Right? What’s the point in auditing the income statement if you’ve audited everything else on the balance sheet – and it all balances. In fact, you’ve probably noticed that the focus of all the audit work we’ve studied has been on the balance sheet. Please consider and discuss the reasons why...

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