Obtaining sufficient appropriate evidence is essential if the CPA firm is to minimize legal liability.

Question

Quizplus · Accepted Answer

Obtaining sufficient and appropriate evidence is one of the primary responsibilities of a CPA firm to ensure the reliability and accuracy of financial statements. This process also helps to minimize legal liability in case of any misstatement or fraud in the financial statements. CPA firms must follow various auditing standards and procedures to ensure that they have obtained enough evidence to support their opinion on the financial statements. Without sufficient and appropriate evidence, the CPA firm may face legal liability and damage to their reputation.

Obtaining Sufficient Appropriate Evidence Is Essential If the CPA Firm