One of the most controversial parts of the auditor's report is the meaning of the term "fairly stated." What does the auditor's opinion mean when these words are used?
A)The values in the financial statements represent the net realizable values of the assets of the entity.
B)The financial statements are accurate and provide a true and fair representation of the entity's current financial position.
C)The values in the financial statements represent the value of the entity now,if it were liquidated on an open market.
D)The financial statements are fairly stated in accordance with the financial reporting framework described in the opinion paragraph.

Question

Quizplus · Accepted Answer

The term "fairly stated" means that the financial statements are presented in accordance with the applicable financial reporting framework, not that they are perfectly accurate or represent liquidation values.

One of the Most Controversial Parts of the Auditor's Report