The auditor will most likely perform extensive tests for possible understatement of:
A)Revenues.
B)Assets.
C)Liabilities.
D)Capital.

Question

Quizplus · Accepted Answer

Auditors perform extensive tests for possible understatement of liabilities to ensure that all obligations of the company are properly recorded. Understating liabilities can make a company appear more financially stable than it actually is, affecting the accuracy of the financial statements.

The Auditor Will Most Likely Perform Extensive Tests for Possible