The auditor must evaluate whether the financial statements are consistent with the requirements of the applicable financial reporting framework and must also consider
A)the overall presentation,structure,and content of the financial statements
B)the accounting policies selected are consistent with management's policies
C)the accounting estimates made by management are predictable
D)whether the financial statements,including the footnotes,represent the underlying transactions in a manner that achieves fair presentation
E)the financial forecasts made by management are accurate
F)both A and D
G)both B and C
H)both D and E

Question

Quizplus · Accepted Answer

The auditor must consider both the overall presentation, structure, and content of the financial statements (choice A) and whether the financial statements represent the underlying transactions in a manner that achieves fair presentation (choice D). The other choices (B, C, E, and G) are not correct because the auditor does not evaluate whether management's accounting policies or estimates are accurate or predictable, nor does the auditor assess the accuracy of financial forecasts made by management.

The Auditor Must Evaluate Whether the Financial Statements Are Consistent