The primary responsibility of an independent auditor who is a professional accountant is to:
A) Prepare or make changes to source documents.
B) Assess whether the management is honest.
C) Evaluate the "fair presentation" of the company's financial reports.
D) Prepare current financial reports for the client.

Question

Quizplus · Accepted Answer

An independent auditor's primary responsibility is to evaluate the "fair presentation" of a company's financial reports. This means verifying that the financial statements are accurate, complete, and adhere to Generally Accepted Accounting Principles (GAAP). While auditors may assess management integrity as part of their assessment of financial reporting risks, this is not their primary responsibility. Auditors also do not prepare or make changes to source documents or current financial reports for the client.

The Primary Responsibility of an Independent Auditor Who Is a Professional