Which of the following best describes the primary role and responsibility of the independent external auditor?
A) Produce a company's annual financial statements and notes.
B) Express an opinion on the fairness of a company's annual financial statements and footnotes.
C) Provide business consulting advice to audit clients.
D) Obtain an understanding of the client's internal control structure and give management a report about control problems and deficiencies.

Question

Quizplus · Accepted Answer

The primary role and responsibility of the independent external auditor is to express an opinion on the fairness of a company's annual financial statements and footnotes. The auditor's responsibility is to provide reasonable assurance that the financial statements are free from material misstatements due to fraud or error. They do not produce the financial statements or provide business consulting advice, although they may obtain an understanding of the internal control structure in order to assess the risk of material misstatements.

Which of the Following Best Describes the Primary Role and Responsibility