The auditor must evaluate whether the financial statements are consistent with the requirements of the applicable financial reporting framework for which of the following items?
A)the financial statements provide adequate disclosures
B)the accounting policies selected are consistent with management's policies
C)the accounting estimates made by management are predictable
D)the terminology used in the financial statements is appropriate
E)the financial forecasts made by management are accurate
F)both A and B
G)both A and D
H)both C and E

Question

Quizplus · Accepted Answer

The auditor evaluates whether the financial statements are consistent with the applicable financial reporting framework by ensuring that disclosures are adequate (A) and that the terminology used is appropriate (D). These aspects are directly related to the presentation and disclosure requirements of financial reporting frameworks.

The Auditor Must Evaluate Whether the Financial Statements Are Consistent