Most accounting and auditing professionals agree that when an audit has failed to uncover material misstatements, and the wrong type of audit opinion is issued, the audit firm:
A) has failed to follow auditing standards.
B) deserves to lose the lawsuit.
C) should be asked to defend the quality of the audit.
D) should not be held responsible for the financial loss suffered by others.

Question

Quizplus · Accepted Answer

The audit firm should be asked to defend the quality of the audit because it is their responsibility to ensure that auditing standards are followed and that the audit opinion is accurate. However, whether they are held liable depends on the specifics of the case and whether negligence or failure to follow standards can be proven.

Most Accounting and Auditing Professionals Agree That When an Audit