The development of the financial statements is management's responsibility, and the auditor is not concerned with the process of development.

Question

Quizplus · Accepted Answer

This statement is false. The auditor has a responsibility to evaluate the process of development of the financial statements to ensure that they are presented fairly and in accordance with the accounting standards. This includes reviewing the company's internal controls over financial reporting, assessing the reasonableness of estimates made by management, and ensuring that the financial statements are free from material misstatements.

The Development of the Financial Statements Is Management's Responsibility, and the Auditor