In an engagement to express an opinion on one or more specified elements, accounts, or items of a financial statement, the auditor can generally audit only those specified elements and not the entire set of financial statements. However, the auditor is required to audit the entire set of financial statements if the elements specified include
A) Net Income.
B) Stockholders' Equity.
C) Net Income and Stockholders' Equity.
D) Assets.

Question

Quizplus · Accepted Answer

The auditor is required to audit the entire set of financial statements if the elements specified include Net Income and Stockholders' Equity. Therefore, option C is the correct answer. Options A and D are incorrect because they only specify one element each, while option B specifies Stockholders' Equity but not Net Income.

In an Engagement to Express an Opinion on One or More