When assets are being verified, auditors focus much of their attention on making sure that the accounts are not overstated. Alternatively, auditors focus their efforts on understatement when auditing liabilities. What is the primary reason for this difference in focus?
A) auditors' legal liability
B) GAAP
C) GAAS requirements
D) all of the above

Question

Quizplus · Accepted Answer

Auditors' legal liability is the primary reason for focusing on overstatement of assets and understatement of liabilities, as these misstatements can lead to misleading financial statements and potential legal consequences for auditors.

When Assets Are Being Verified, Auditors Focus Much of Their