The auditor's judgment concerning the overall fairness of the presentation of financial position, results of operations, and cash flows is applied within the framework of:
A)quality control.
B)generally accepted auditing standards, which include the concept of materiality.
C)the auditor's evaluation of the audited company's internal control.
D)the applicable financial reporting framework (i.e., GAAP in the United States).

Question

Quizplus · Accepted Answer

The auditor's judgment concerning the overall fairness of the presentation of financial position, results of operations, and cash flows is applied within the framework of the applicable financial reporting framework, which, in the United States, is GAAP. The auditor is responsible for ensuring that the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework. This is the foundation for an auditor's opinion on the fairness of the presentation of financial statements.

The Auditor's Judgment Concerning the Overall Fairness of the Presentation