One of the reasons that an auditor must be competent is so that they can
A)select the type and amount of evidence to accumulate.
B)explain to staff how the bookkeeping should be done.
C)record the transactions properly for the underlying records.
D)capture the information properly in the computer files.

Question

Quizplus · Accepted Answer

An auditor must be competent in selecting the type and amount of evidence to accumulate in order to form an opinion on the financial statements. They need to have the necessary knowledge and expertise to understand the client's business and the risks associated with it. They must also be able to evaluate the sufficiency and appropriateness of the audit evidence, which is crucial in determining the validity of the financial statements. The other options (B, C, and D) are tasks that are typically performed by bookkeepers or accountants, not auditors.

One of the Reasons That an Auditor Must Be Competent