Which one of the following is a requirement pf the reporting standards included in the generally accepted auditing standards?
A) The auditor will state explicitly whether the financial statements are fairly presented in accordance with the applicable financial reporting framework.
B) The auditor will identify in the auditor's report, those circumstances in which auditing principles have not been consistently observed in the current period in comparison to the preceding period.
C) The auditor will review adjusting journal entries for accuracy, and if the auditor concludes those entries are not reasonable accurate, the auditor must so state in the auditor's report.
D) The auditor will express an unqualified opinion on the financial statements, or will conduct additional audit procedures until such an opinion can be expressed.

Question

Quizplus · Accepted Answer

According to the generally accepted auditing standards, the auditor is required to state explicitly whether the financial statements are fairly presented in accordance with the applicable financial reporting framework in the auditor's report. This requirement is known as the reporting standard. Therefore, Choice A is the correct answer.

Choice B is not a requirement of the reporting standard but is related to consistency in auditing principles. Choice C is related to the accuracy of adjusting journal entries, but the reporting standard does not require the auditor to review or state anything specific about adjusting entries. Choice D is not completely accurate as the auditor may express a qualified, adverse or disclaimer of opinion if the financial statements are not presented fairly.

Which One of the Following Is a Requirement Pf the Reporting