Due professional care, the third general standard, is concerned with what is done by the independent auditor and how well it is done.For example, due care in the matter of audit documentation requires that audit documentation of the evidence gathered by the auditor meets which of the following criteria?
A)Workpapers are prepared in sufficient detail so that they can be given to the client for future reference.
B)The content is sufficient to provide support for the auditor's opinion, including the auditor's representation as to compliance with auditing standards.
C)Audit evidence is principally gathered to determine if the client's financial statements, as prepared by management, can be relied upon to make managerial decisions about the firm.
D)Audit evidence as displayed in the workpapers is primarily performed to protect the auditing firm in the case of a lawsuit by investors.

Question

Quizplus · Accepted Answer

The due care standard requires that the audit documentation includes sufficient content to support the auditor's opinion and compliance with auditing standards. The workpapers should not be prepared in detail for the client's future reference only, nor should they primarily serve to protect the auditing firm against lawsuits. The audit evidence is gathered to determine if the client's financial statements are reliable for managerial decisions, but this is not the criterion for audit documentation under the due care standard.

Due Professional Care, the Third General Standard, Is Concerned with What