The auditor is responsible for determining
A)only if the ending balance in the balance sheet account is stated in accordance with the applicable financial reporting framework
B)only if the ending balance in the income statement account is stated in accordance with the applicable financial reporting framework
C)only if the beginning balance in the balance sheet account is stated in accordance with the applicable financial reporting framework
D)only if the beginning balance in the income statement account is stated in accordance with the applicable financial reporting framework

Question

Quizplus · Accepted Answer

The auditor is responsible for determining if both beginning and ending balances in balance sheet accounts are stated in accordance with the applicable financial reporting framework. However, the auditor is only responsible for determining if the ending balance in income statement accounts is stated in accordance with the applicable financial reporting framework. Therefore, option A is the best choice as it correctly presents the auditor's responsibility regarding the balance sheet accounts.

The Auditor Is Responsible for Determining