Which of the following is true with respect to the auditor's report?
A) The report indicates that the client's financial statements were audited in accordance with generally accepted accounting standards.
B) The report indicates that the client's financial statements were audited in accordance with applicable auditing standards.
C) The report indicates that the client's financial statements were audited in accordance with the auditor's best judgment.
D) The report indicates that the client's financial statements were audited in accordance with statements issued by the FASB.

Question

Quizplus · Accepted Answer

The auditor's report indicates that the client's financial statements were audited in accordance with applicable auditing standards. This includes generally accepted accounting principles (GAAP) as well as other necessary standards such as the Generally Accepted Auditing Standards (GAAS) and International Standards on Auditing (ISA). The auditor's report does not indicate that the financial statements were audited in accordance with the auditor's best judgment, as this would not provide sufficient guidance or clarity to users of the report. Similarly, the report does not indicate that the financial statements were audited in accordance with statements issued by the FASB alone, as there are other important standards that must also be followed.

Which of the Following Is True with Respect to the Auditor's