The fourth PCAOB standard of reporting requires an auditor to render a report whenever an auditor's name is associated with financial statements.The overall purpose of the fourth standard of reporting is to require that reports
A) State that the examination of financial statements has been conducted in accordance with generally accepted auditing standards.
B) Indicate the character of the auditor's examination and the degree of responsibility assumed by the auditor.
C) Imply that the auditor is independent in fact as well as in appearance with respect to the financial statements under examination.
D) Express whether the accounting principles used in preparing the financial statements have been applied consistently in the period under examination.

Question

Quizplus · Accepted Answer

The fourth standard of reporting requires the auditor to indicate the character of their examination and the degree of responsibility they have assumed. This means that the auditor must state the scope of their examination and the level of assurance provided by their opinion. This standard also requires the auditor to state whether the financial statements are presented in accordance with generally accepted accounting principles. However, this is not the overall purpose of the standard, as the main focus is on the auditor's examination and the degree of responsibility assumed by the auditor.

The Fourth PCAOB Standard of Reporting Requires an Auditor to Render