The Reporting section of the Principles Underlying an Audit Conducted in Accordance with GAAS requires that the report, "states whether the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework." This passage requires:
A)a statement of fact by the auditor.
B)an opinion by the auditor.
C)an implied measure of fairness.
D)an objective measure of compliance.

Question

Quizplus · Accepted Answer

The passage requires an opinion by the auditor as to whether the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework. The auditor must provide an opinion on the fairness of the financial statements, not just a statement of fact or an objective measure of compliance.

The Reporting Section of the Principles Underlying an Audit Conducted