The primary responsibility of an independent auditor who is a professional accountant is to: 1. Prepare...
The primary responsibility of an independent auditor who is a professional accountant is to:
1. Prepare or make changes to source documents.
2. Prepare current financial reports for the client.
3. Evaluate the "fair presentation" of the company's financial reports.
4. Assess whether the management is honest.
Homework Answers
Ans:
The primary responsibility of an independent auditor who is a professional accountant is to evaluate the "fair presentation" of the company's financial reports.
Preparing and make changes to the source is the responsibility of the person in charge of the respective department for which the document relates.
Preparation of financial reports is the responsibility of the management. A person can't prepare the financial reports of the company in the capacity of the independent auditor.
It is not the responsibility of the independent auditor to asses the honesty of the management. However, an auditor may evaluate the risk of material misstatements in the financial report due to the suspicion over the integrity of management. But suspicion over the integrity of management does not change the primary objective of an independent auditor to evaluate whether financial reports are showing a true and fair view of accounts or not.
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