Most accounting and auditing professionals agree that when an audit has failed to uncover material misstatements,and the wrong type of audit opinion is issued,the audit firm
A)has failed to follow generally accepted auditing standards (GAAS).
B)deserves to lose the lawsuit.
C)should be asked to defend the quality of the audit.
D)should not be held responsible for the financial loss suffered by others.

Question

Quizplus · Accepted Answer

When an audit fails to uncover material misstatements, the audit firm should be asked to defend the quality of the audit to determine if they followed generally accepted auditing standards (GAAS) and whether they are liable for any financial losses.

Most Accounting and Auditing Professionals Agree That When an Audit