The auditor's BEST defence when existing material misstatements in the financial statements are NOT uncovered in the audit is that the:
A) financial statements are the client's responsibility.
B) audit was conducted in accordance with generally accepted accounting principles.
C) audit was conducted in accordance with Australian auditing standards.
D) client is guilty of contributory negligence.

Question

Quizplus · Accepted Answer

The auditor's best defense is that the audit was conducted in accordance with Australian auditing standards, which implies that the auditor followed professional guidelines and procedures designed to conduct the audit effectively. However, even when these standards are followed, not all material misstatements may be uncovered, especially if they were concealed or involved complex transactions.

The Auditor's BEST Defence When Existing Material Misstatements in the Financial