Which of the following illustrates the definition of auditing with respect to the reporting process?
A)accumulation and evaluation of evidence about balance sheet accounts
B)reporting on the degree of correspondence between financial statements and ASPE/IFRS
C)writing an operational audit report that is tailored to the client's situation
D)making sure that the auditor is competent and understands evidence gathering

Question

Quizplus · Accepted Answer

Auditing with respect to the reporting process involves reviewing the financial statements and reporting on whether they comply with applicable accounting standards, such as ASPE or IFRS. Choice A involves auditing specific balance sheet accounts, which is a component of substantive testing. Choice C involves operational auditing, which is a separate type of audit engagement. Choice D involves the competence of the auditor and evidence gathering, but does not specifically relate to auditing with respect to the reporting process.

Which of the Following Illustrates the Definition of Auditing with Respect