Which one of the following is part of the auditor's function?
Correct answer: D. Obtaining and evaluating audit evidence on the financial statements
- A. Conducting the inventory count
- B. Providing representations to management Get Executive Coaching
- C. Calculating the year-end accruals figure for inclusion in the accounts
- D. Obtaining and evaluating audit evidence on the financial statements
Explanation
The auditor's central function is to obtain and evaluate sufficient appropriate evidence supporting an opinion on the financial statements. Preparing accruals or management representations would assign management's work to the auditor, while inventory counts are performed by management and observed by the auditor.
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About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
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