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

If the specified elements include both net income and stockholders' equity, the auditor is required to audit the entire set of financial statements as both elements are integral parts of the financial statements. If only assets are specified, the auditor can limit the audit to only those elements and not the entire set of financial statements. However, it is important to note that the auditor must consider materiality and the potential impact on other elements of the financial statements when performing a limited scope audit.

In an Engagement to Express an Opinion on One or More