If the auditor were responsible for making certain that all of management's assertions in the financial statements were absolutely 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

It is not realistic or economically practical for auditors to be responsible for ensuring that all management assertions in the financial statements are absolutely correct. This is because there may be limitations in terms of time, resources and access to information, among other factors. Therefore, auditors aim to provide reasonable assurance that the financial statements are free from material misstatement, rather than absolute certainty.

If the Auditor Were Responsible for Making Certain That All