What is the best description of the basis on which an auditor issues his or her report on financial statements?
A)Reporting standards.
B)Sufficiency and appropriateness of evidence.
C)Application of GAAP.
D)Integrity of management.

Question

Quizplus · Accepted Answer

The sufficiency and appropriateness of evidence is the main basis on which an auditor issues his or her report on financial statements. This means that the auditor must gather enough and relevant evidence that supports the accuracy and completeness of the financial statements. Other factors such as reporting standards, application of GAAP, and integrity of management are also considered but are not the primary basis for the auditor's report.

What Is the Best Description of the Basis on Which