Which one of the following best describes the external auditor's report?
A)The external auditor's report is an opinion.
B)The external auditor's report is a statement of fact.
C)The external auditor's report must comply with both FASB and IASB standards.
D)The firms that provide external audit reports are restricted to 20 partners,based on authoritative standards issued by the PCAOB.

Question

Quizplus · Accepted Answer

The external auditor's report is an opinion that expresses the auditor's assessment of the fairness and accuracy of the financial statements. It is not a statement of fact, and while compliance with accounting standards is important, it is not the primary focus of the auditor's report. While the PCAOB does regulate the auditing profession, there is no restriction on the number of partners a firm can have.

Which One of the Following Best Describes the External Auditor's