The fourth PCAOB reporting standard requires the auditor's report to contain either an expression of opinion regarding the financial statements taken as a whole or an assertion to the effect that an opinion cannot be expressed.The objective of the fourth standard is to prevent
A) An auditor from reporting on one basic financial statement and not the others.
B) An auditor from expressing different opinions on each of the basic financial statements.
C) Management from reducing its final responsibility for the basic financial statements.
D) Misinterpretations regarding the degree of responsibility the auditor is assuming.

Question

Quizplus · Accepted Answer

The fourth PCAOB reporting standard requires the auditor's report to contain an expression of opinion or a statement that an opinion cannot be expressed. This requirement is intended to prevent misinterpretations regarding the degree of responsibility the auditor is assuming. By providing an opinion or stating that an opinion cannot be expressed, the auditor clarifies their level of involvement and responsibility for the financial statements. This helps prevent confusion or misunderstanding regarding the auditor's role and ensures that stakeholders have a clear understanding of the auditor's opinion or lack thereof.

The Fourth PCAOB Reporting Standard Requires the Auditor's Report to Contain