Which of the following is accurate,as indicated in the principles underlying an audit?
A)Management is expected to provide the auditors with all needed evidence prior to the beginning of audit work.
B)An auditor is unable to obtain absolute assurance that the financial statements are free from material misstatement.
C)Auditors are responsible for having appropriate competence to perform the audit without the assistance of outside specialists.
D)Management is responsible for preparing accurate financial statement amounts,while auditors are responsible for auditing those amounts and for preparing note disclosures related to those amounts.

Question

Quizplus · Accepted Answer

The principle of audit states that an auditor cannot obtain absolute assurance that the financial statements are free from material misstatement. This is because of inherent limitations in the audit process and due to the fact that material misstatement can arise from fraud or error, which may not be easy to detect. This principle is an important consideration for auditors when planning and performing an audit.

Which of the Following Is Accurate,as Indicated in the Principles