An audit by an independent external auditor usually does not involve which of the following?
A)an assessment of the capability of a firm's accounting system to accumulate, measure, and synthesize transactional data properly.
B)an assessment of the operational effectiveness of the accounting system
C)a determination of whether the financial report complies with the requirements of the applicable authoritative guidance
D)an assessment of the operational economy, efficiency, and effectiveness of the company's operations
E)an assessment of the effectiveness of a firm's internal control system for financial reporting.

Question

Quizplus · Accepted Answer

An audit by an independent external auditor typically does not involve an assessment of the operational economy, efficiency, and effectiveness of the company's operations. The focus is on determining whether the financial report complies with the applicable authoritative guidance and providing assurance on the accuracy and completeness of financial statements. Evaluating the effectiveness of internal controls for financial reporting is also typically part of the audit process. However, the operational effectiveness of the accounting system may be assessed as part of the audit to ensure accurate and reliable financial reporting.

An Audit by an Independent External Auditor Usually Does Not