What reasoning would an auditor use when no material misstatements are discovered?
A) The audit was conducted in accordance with auditor judgement.
B) The audit was conducted in accordance with Australian auditing standards.
C) Misstatements are the responsibility of management.
D) The audit was conducted in accordance with Australian accounting standards.

Question

Quizplus · Accepted Answer

The correct choice is B because Australian auditing standards guide how audits should be conducted, including the procedures for identifying material misstatements. If no material misstatements are discovered, it implies that the audit was conducted properly according to these standards.

What Reasoning Would an Auditor Use When No Material Misstatements