Indicate whether each of the following statements about the auditor's role in financial accounting is true...

Indicate whether each of the following statements about the auditor's role in financial accounting is true or false.

The proper conduct of an audit guarantees the accuracy of all figures on the financial statements.

The financial statement audit is a detailed review of a company's financial statements and documents.

The primary responsibility of the independent accounting firm is to the public.

The most favorable type of audit report is called a qualified opinion.

The ultimate responsibility for the financial statements lies with management of the company rather than the independent accounting firm.

Expert Solution

1. False. The Auditor are responsible to provide reasonable assurance on the fair view of accounts and affairs of the entity by the proper conduct of audit but they are in no position to provide guarantees with respect to accuracy of financial statement because an audit involves Inherent risk.

2. True. The financial statement audit is a detailed review of a company's financial statements and documents and thereby providing whether the financial statements provide true and fair view of the entity

3. True. The Independent accounting firm are appointed by the public and they should be responsible to the public and their primary responsibility lies with public.

4. false. The most favorable type of audit report is called a Unqualified opinion Which says that the Financial statements depicts true and fair view of the affairs of the company or entity

5. True. Management of the company is responsible to prepare and provide financial statements by following relevant accounting standard. Independent accounting firm is responsible to Provide reasonable assurance on the financial statements

ekkarill92 answered 1 year ago

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