An identified user of a financial statement is one known to the auditor to be a user of the financial statement.

Question

Quizplus · Accepted Answer

When conducting an audit, it is important to identify the users of the financial statements in order to determine the level of assurance required and tailor the audit procedures accordingly. An identified user is one that the auditor has knowledge of and acknowledges as being a legitimate user of the financial statements.

An Identified User of a Financial Statement Is One Known