An audit establishes the conformity of assertions with specified criteria.In an audit of a financial report, the criteria by which financial report assertions are judged are:
A)the ethical rules of conduct.
B)Australian Auditing Standards.
C)listing rules of the Australian Securities and Investments Commission.
D)applicable accounting standards.

Question

Quizplus · Accepted Answer

The applicable accounting standards provide the criteria by which the assertions in a financial report are judged in a financial report audit. The ethical rules of conduct, Australian Auditing Standards, and listing rules of the Australian Securities and Investments Commission may provide guidance for the auditor's work, but they are not the primary criteria for evaluating the financial report assertions.

An Audit Establishes the Conformity of Assertions with Specified Criteria