Audit documentation of the evidence gathered by the auditor should meet 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 audit documentation should support the auditor's opinion and compliance with auditing standards. Providing workpapers for the client's future reference is not a primary purpose of audit documentation. While the reliability of financial statements is important, audit evidence is gathered to support the auditor's opinion, not to make managerial decisions. While audit evidence can help protect the auditing firm in the case of a lawsuit, this is not the primary purpose of audit documentation.

Audit Documentation of the Evidence Gathered by the Auditor Should