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

Question

Quizplus · Accepted Answer

Auditors are responsible for providing reasonable assurance that the financial statements are free from material misstatements. However, if auditors were responsible for ensuring all assertions made by management were correct, it would not be economically practical as the cost of the audit would become exorbitant. Additionally, audits cannot guarantee that bankruptcies will not occur as there can be unforeseen or uncontrollable external events that can affect a company's financial health.

If the Auditor Were Responsible for Making Certain That All