If the auditor suspects that the financial statements are intentionally misstated,he or she should perform procedures to confirm or dispel that suspicion.

Question

Quizplus · Accepted Answer

This is true as it is the responsibility of the auditor to investigate any suspicions of intentional misstatements in the financial statements. The auditor should perform procedures to gather evidence that either confirms or dispels their suspicions. If the suspicions are confirmed, the auditor may need to take further action, such as reporting the matter to management or regulatory authorities.

If the Auditor Suspects That the Financial Statements Are Intentionally