When preparing the financial statements, it is acceptable for the auditor to prepare:
A) the footnotes for a client.
B) the statements for a client.
C) a draft of the statements and footnotes for a client.
D) a draft of the statements for a client.

Question

Quizplus · Accepted Answer

Auditors can assist in preparing a draft of the financial statements and footnotes for a client as part of their services, provided that the client approves and takes responsibility for the financial statements. This assistance is often part of the audit process, especially for smaller clients who may not have the expertise in-house.

When Preparing the Financial Statements, It Is Acceptable for the Auditor