Which of the following best reflects the auditors' reporting responsibility under generally accepted auditing standards? $\begin{array}{llc}& \text {Other Information Accompanying}& \text { Required Supplementary}
& \text {the Financial statements}& \text { Information}\end{array}$ A.$\begin{array}{llc}&&&&& \text { Exception } &&&&&&&&& \text { Required } \\end{array}$
B. $\begin{array}{llc}&&&&& \text { Exception } &&&&&&&&& \text { Exception } \\end{array}$
C. $\begin{array}{llc}&&&&& \text { Required } &&&&&&&&& \text { Required } \\end{array}$
D. $\begin{array}{llc}&&&&& \text { Required } & &&&&&&&&\text { Exception }
\end{array}$
A)Option A
B)Option B
C)Option C
D)Option D

Question

Quizplus · Accepted Answer

Under generally accepted auditing standards, auditors have a responsibility to express an opinion on the financial statements. Option A implies that auditors only need to report on potential fraud and illegal acts, which is not the extent of their responsibility. Option B implies that auditors only need to identify material weaknesses in internal control, but does not address their responsibility to express an opinion on the financial statements. Option D implies that auditors only need to provide limited assurance, but in reality, they are required to provide either an unqualified opinion or a qualified opinion if there are significant issues with the financial statements. Therefore, option C, which states that auditors have a responsibility to express an opinion on the financial statements, best reflects the auditors' reporting responsibility under generally accepted auditing standards.

Which of the Following Best Reflects the Auditors' Reporting Responsibility