If the auditor were responsible for making certain that all the assertions of management in the statements are correct, then:
A) audits would be much easier to complete.
B) bankruptcies would be reduced to a very small number.
C) audits would not be economically feasible.
D) bankruptcies could no longer occur.

Question

Quizplus · Accepted Answer

It is not economically feasible for the auditor to be responsible for ensuring that all the assertions made by management in the statements are correct because it would require extensive testing and verification, which would significantly increase the cost of the audit. Additionally, the auditor's responsibility is to provide reasonable assurance, not absolute assurance, that the financial statements are free from material misstatements.

If the Auditor Were Responsible for Making Certain That All