The independent auditor's report does which of the following?
A)Describes that the common-sized statements are covered by the audit.
B)Gives the auditor's opinion regarding the fairness of the financial statements.
C)Summarizes what the auditor did.
D)States that the financial statements are effective.

Question

Quizplus · Accepted Answer

The independent auditor's report provides the auditor's opinion on the fairness of the financial statements as a whole, based on their examination of those statements. The report also summarizes some of the audit work that was done, but its main purpose is to express the auditor's opinion on the financial statements. The report would not typically state that the financial statements are "effective", as that is not a standard term or requirement in auditing. The report may note that the common-sized statements were prepared by management or included in the financial statements, but this would not be a major focus of the report. Therefore, choice B is the best answer.

The Independent Auditor's Report Does Which of the Following