Because company policies are reflected in the financial statements, it is important that auditors:
A) carefully evaluate basic policy decisions.
B) periodically review information on accounting policies to determine if there has been a change.
C) include the primary accounting policies in the permanent file.
D) all of the above

Question

Quizplus · Accepted Answer

All three options are important for auditors to ensure that company policies are accurately reflected in the financial statements. They must carefully evaluate policy decisions to ensure they are in compliance with accounting standards and regulations. They should periodically review information on accounting policies to ensure they are consistent and have not been changed without proper documentation. Finally, including primary accounting policies in the permanent file provides a reference for future audits to ensure consistency in treatment of accounting policies.

Because Company Policies Are Reflected in the Financial Statements, It