Most of the independent auditor's work in formulating an opinion on a financial report consists of:
A) obtaining an understanding of the internal control.
B) obtaining and examining audit evidence.
C) examining cash transactions.
D) comparing recorded accountability with assets.

Question

Quizplus · Accepted Answer

The main task of an auditor is to obtain and examine audit evidence to form an opinion on the financial statements. This may include examining documents and records, performing analytical procedures, and testing internal controls. While obtaining an understanding of the internal control is also an important part of the audit process, it is not the primary focus of the auditor's work in formulating an opinion. Examining cash transactions and comparing recorded accountability with assets are both components of obtaining and examining audit evidence.

Most of the Independent Auditor's Work in Formulating an Opinion