In a financial statement audit, the auditor
A) gathers evidence to determine whether the statements contain material errors or other misstatements.
B) must have a thorough understanding of the entity and its environment.
C) determines whether the financial statements are stated in accordance with specified criteria.
D) all of the above.

Question

Quizplus · Accepted Answer

All three options are correct statements about the role of an auditor in a financial statement audit. The auditor must gather evidence to ensure that the statements are free from errors and material misstatements, must have a thorough understanding of the entity and its environment to provide context for their findings, and must determine whether the statements comply with established criteria. Therefore, option D is the best choice.

In a Financial Statement Audit, the Auditor