Which one of the following statements is true?
A) Management's assertions follow and are closely related to the auditor's objectives.
B) The auditor's primary responsibility is to find and disclose fraudulent management assertions.
C) The auditor's objectives follow and are closely related to management assertions.
D) Assertions about presentation and disclosure deal with whether the accounts have been included in the financial statements at appropriate amounts.

Question

Quizplus · Accepted Answer

The auditor's objectives are designed to respond to management's assertions about the financial statements. Management asserts that the financial statements are fair and accurate in various respects (e.g., existence, completeness, valuation, rights and obligations, and presentation and disclosure), and the auditor's objectives are to gather evidence to evaluate the truthfulness of these assertions.

Which One of the Following Statements Is True