The primary responsibility of an external auditor is to determine whether
A) all financial transactions of the organization have been properly recorded.
B) management has committed fraud in preparing the financial statements.
C) assess compliance by the organization's employees with company policies and procedures.
D) the organization's financial statements are fairly presented.
E) the organization has properly recorded and paid its tax liabilities to the appropriate taxing authorities.

Question

Quizplus · Accepted Answer

The primary responsibility of an external auditor is to determine if the organization's financial statements are fairly presented in accordance with the applicable financial reporting framework (e.g., GAAP, IFRS). This involves assessing whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, thereby providing reasonable assurance to users of those statements.

The Primary Responsibility of an External Auditor Is to Determine