Most of the independent auditor's work in formulating an opinion on a financial report consists of:
A)obtaining an understanding of the internal control.
B)obtaining and examining audit evidence.
C)examining cash transactions.
D)comparing recorded accounts with assets.

Question

Quizplus · Accepted Answer

The majority of the independent auditor's work involves obtaining and examining audit evidence to determine if the financial report is presented fairly and in accordance with generally accepted accounting principles. Although understanding internal control is important, it is not the primary focus of the auditor's work. Examining cash transactions and comparing recorded accounts with assets are only a small part of the auditor's overall work.

Most of the Independent Auditor's Work in Formulating an Opinion