In the audit of the transactions and amounts in the capital acquisitions and repayments cycle, the auditor must take great care in making sure that the significant legal requirements affecting the financial statements have been properly fulfilled and:

Question

Quizplus · Accepted Answer

The auditor must ensure that any significant legal requirements affecting the financial statements have been properly fulfilled and adequately disclosed in the financial statements. Reporting violations to the SEC or issuing a disclaimer may be necessary in extreme cases, but the primary responsibility of the auditor is to ensure that the financial statements are fairly presented and comply with legal requirements. If there are any departures from the agreements, they must be disclosed and made with management's knowledge and consent.

In the Audit of the Transactions and Amounts in the Capital