What is an auditor required to do with respect to a client's financial reporting framework?
A)assess whether the framework selected by management is suitable
B)select an applicable framework for use with the financial statements
C)make sure that ASPE or ASNPO are in use for publicly listed companies
D)select the accounting principles to be used as part of the reporting framework

Question

Quizplus · Accepted Answer

An auditor is required to assess whether the framework selected by management is suitable for the preparation of the financial statements. The auditor must evaluate the framework's appropriateness, implementation, and consistency in the preparation of financial statements. The selection and use of an accounting framework is management's responsibility, not the auditor's.

Answer: D (incorrect)
 The auditor is not responsible for selecting the accounting principles to be used as part of the reporting framework. This is management's responsibility.

Answer: B (incorrect)
 The auditor is not responsible for selecting an applicable framework for use with the financial statements. This, too, is management's responsibility.

Answer: C (incorrect)
 The auditor is not required to make sure that ASPE or ASNPO are in use for publicly listed companies. Management is responsible for selecting the appropriate framework for reporting purposes.

What Is an Auditor Required to Do with Respect to a Client's