Question

Which of the following is NOT an element of the auditor's responsibility of the AICPA's auditor's report for nonpublic companies? Multiple Choice States the auditor's responsibility to express an opinion on the financial statements States the audit provides reasonable assurance that the statements are free of material misstatement States audit provides reasonable basis for the opinion States the audit evaluates the overall financial statement presentation

Answer 1

States audit provides reasonable basis for the opinion.

Step-by-step explanation:

The auditor performs the audit to assure certain things about the financial statements of the company. As like:

• The financial statements represent true and fair view of the affairs of the company.
• There is no false presentation in the company's financial statements.

• The company complies with all the presentation standards for financial statements as stated by US GAAP.

This assures that the audit of financial statements do not provide any basis of opinion, rather the auditor presents his opinion on financial statements.