If the auditor's evidence fails to support an assertion,the auditor then proposes an adjusting entry or modifies the financial statement disclosures so that the financial statements are consistent with the assertion.

Question

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If the auditor's evidence fails to support an assertion, they should propose an adjusting entry or modify the financial statement disclosures so that the financial statements are consistent with the assertion. This is in accordance with generally accepted auditing standards (GAAS).

If the Auditor's Evidence Fails to Support an Assertion,the Auditor