The Reporting section of Principles Underlying an Audit Conducted in Accordance with GAAS requires the auditor's report to contain either an expression of opinion regarding the financial statements taken as a whole or an assertion to the effect that an opinion cannot be expressed. The objective of this requirement is to prevent:
A)an auditor from reporting on one basic financial statement and not the others.
B)an auditor from expressing different opinions on each of the basic financial statements.
C)management from reducing its final responsibility for the basic financial statements.
D)misinterpretations regarding the degree of responsibility the auditor is assuming.

Question

Quizplus · Accepted Answer

The objective of requiring the auditor's report to contain either an expression of opinion or an assertion to the effect that an opinion cannot be expressed is to prevent misinterpretations regarding the degree of responsibility the auditor is assuming. This requirement ensures that the auditor clearly communicates their level of responsibility for the financial statements to users of the auditor's report.

The Reporting Section of Principles Underlying an Audit Conducted in Accordance