If the auditor was responsible for making certain that all the assertions of management in the statements were correct:
A) bankruptcies could no longer occur.
B) audits would not be economically feasible.
C) audits would be much easier to complete.
D) bankruptcies would be reduced to a very small number.

Question

Quizplus · Accepted Answer

It is impossible for an auditor to guarantee that all assertions made by management in the financial statements are correct. The auditor's role is to provide reasonable assurance that the financial statements are free from material misstatements, but not to completely eliminate the risk of bankruptcy or financial failure. If auditors were responsible for ensuring the accuracy of all assertions, audits would be too costly and time-consuming to be economically feasible.

If the Auditor Was Responsible for Making Certain That All