The auditor's report ________.
A) attests that the financial statements are error-free
B) is prepared by the internal auditors
C) states whether the financial statements are presented in accordance with GAAP
D) does not include an assessment of the effectiveness of the company's internal controls

Question

Quizplus · Accepted Answer

The auditor's report states whether the financial statements are presented in accordance with GAAP (Generally Accepted Accounting Principles). It does not attest that the financial statements are error-free (A), as there may still be some material misstatements despite the auditor's best efforts. The auditor's report is prepared by external auditors, not internal auditors (B). While the auditor may test the effectiveness of the company's internal controls over financial reporting, this is not included in the auditor's report (D).

The Auditor's Report ________