The external auditor's primary concern should be ________.
A)adequately controlling the entities operations and its financial reporting
B)adequately supervising the internal audit function
C)with the reporting objective and the operations objectives related to safeguarding of assets
D)ensuring management is immediately made aware of any errors regardless of size

Question

Quizplus · Accepted Answer

The external auditor's primary concern should be with the reporting objective and the operations objectives related to safeguarding of assets. They are responsible for ensuring that the financial statements are free from material misstatement, which includes the proper safeguarding of assets. While they may identify errors of any size, their primary focus is on material misstatements that could have a significant impact on the financial statements. The internal audit function and management's awareness of errors are important, but not the primary concern of the external auditor.

The External Auditor's Primary Concern Should Be ________