Auditors accumulate evidence to
A) defend themselves in the event of a lawsuit.
B) determine if the financial statements are correct.
C) satisfy the requirements of the Securities Acts of 1933 and 1934.
D) reach a conclusion about the fairness of the financial statements.

Question

Quizplus · Accepted Answer

The main objective of accumulating evidence is to support the auditor's opinion on whether the financial statements are fairly presented in all material respects. Option A is incorrect because the audit is not done for the auditor's own protection, but rather to provide assurance to the users of the financial statements. Option B is too narrow. While determining the accuracy of financial statements is part of the audit, the audit also evaluates the completeness, validity, and relevance of the information presented in financial statements. Option C is incorrect because the Securities Acts require companies to provide transparent financial statements, but auditors are not required to accumulate evidence to satisfy the law.

Auditors Accumulate Evidence to