Which of the following ultimately determines the specific audit procedures necessary to provide independent auditors with a reasonable basis for the expression of an opinion?
A) The audit time budget.
B) The auditors' judgment.
C) Generally accepted accounting quality standards.
D) The auditors' working papers.

Question

Quizplus · Accepted Answer

The auditors' judgment ultimately determines the specific audit procedures necessary to provide independent auditors with a reasonable basis for the expression of an opinion. The auditors must exercise professional judgment to assess the level of risk of material misstatement in the financial statements and to determine the most appropriate audit procedures to address those risks. The audit time budget, generally accepted accounting quality standards, and the auditors' working papers are all important considerations in the audit process, but they do not determine the specific audit procedures that need to be performed.

Which of the Following Ultimately Determines the Specific Audit Procedures