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 overall fairness of the presentation of financial position, results of operations, and cash flows is evaluated by the auditor using the applicable financial reporting framework, which in the United States would be generally accepted accounting principles (GAAP). The other options, quality control, generally accepted auditing standards (which includes the concept of materiality), and the evaluation of internal control, are all important components of the auditing process, but do not specifically relate to the auditor's judgment on the overall fairness of the financial statements.

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