Working papers that meet the requirements of Canadian Audit Standards provide ________.
A)conclusive evidence the financial statements are free of material misstatement
B)the information the auditee keeps on file to support management's assertions
C)A record of the amount of time spent by the auditor
D)evidence supporting the auditors conclusions and a record of compliance with GAAS

Question

Quizplus · Accepted Answer

Working papers that meet the requirements of Canadian Audit Standards provide evidence supporting the auditors' conclusions as well as a record of compliance with Generally Accepted Auditing Standards (GAAS). They are not conclusive evidence that the financial statements are free of material misstatement, which is the responsibility of the auditor. The information kept on file to support management's assertions is part of the auditee's records, not the auditor's working papers. The amount of time spent by the auditor is important for billing purposes but not relevant to the quality of the working papers.

Working Papers That Meet the Requirements of Canadian Audit Standards