Which of the following violates the generally accepted auditing standard indicated?
A)Opinion: Auditors issued an adverse report on financial statements.
B)Consistency: An auditor explained inconsistencies between a client's application of GAAP over the last two years.
C)Evidence: An auditor used last year's report as the only evidence for the current year's report.
D)All of these violate the standards indicated.

Question

Quizplus · Accepted Answer

Using last year's report as the only evidence violates the auditing standard of sufficiency of evidence. Auditors are required to obtain sufficient and appropriate evidence to support their findings and conclusions. Relying solely on last year's report may not provide enough evidence for the current year's audit. Choices A and B do not violate generally accepted auditing standards. An adverse report is warranted when the financial statements are materially misstated or not presented in accordance with the applicable financial reporting framework. Explaining inconsistencies between a client's application of GAAP over the last two years is required by the consistency auditing standard.

Which of the Following Violates the Generally Accepted Auditing Standard