When the auditors express an opinion on financial statements,their responsibilities extend to:
A)The underlying wisdom of their client's management decisions.
B)Whether the results of their client's operating decisions are fairly presented in the financial statements.
C)Active participation in the implementation of the advice given to their client.
D)An ongoing responsibility for their client's solvency.

Question

Quizplus · Accepted Answer

The auditors' responsibility is to express an opinion on whether the financial statements are fairly presented in all material respects, in accordance with the applicable accounting standards. Their responsibility does not extend to the underlying wisdom of management decisions, implementation of advice, or ongoing solvency of the client.

When the Auditors Express an Opinion on Financial Statements,their Responsibilities