The auditor of financial statements must make very difficult interpretations regarding authoritative literature.Additionally,the auditor must

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The auditor must consider whether the application of a generally accepted accounting principle best portrays the economic activity of the company. The auditor must make difficult judgments and interpretations of authoritative literature to determine whether the financial statements are fairly presented in accordance with accounting standards. However, the auditor should not force management to make decisions regarding their financial statements, disregard independence, or establish new criteria for financial statement comparison.

The Auditor of Financial Statements Must Make Very Difficult Interpretations