Final Answer:
The statment, the auditors' report should either contain an expression of opinion on the financial statements taken as a whole or an assertion to the effect that an opinion cannot be expressed. is True.
Step-by-step explanation:
The auditors' report indeed should include either an opinion on the financial statements as a whole or a statement indicating that an opinion cannot be expressed. This ensures transparency and accountability in financial reporting, reflecting the auditor's assessment of the reliability and accuracy of the presented financial information. The absence of an opinion or an indication of the inability to express one could signify unresolved issues or limitations encountered during the audit process, which is crucial information for stakeholders relying on these reports.
The auditors' responsibility is to conduct an independent examination and evaluation of the financial statements based on applicable auditing standards. Subsequently, their report should reflect the outcome of this assessment, presenting a clear stance on the reliability and fairness of the financial information. Failure to express an opinion without a valid reason can raise concerns among stakeholders regarding the accuracy and completeness of the financial statements.
An auditor might issue a disclaimer of opinion if there is insufficient evidence or if limitations in the audit scope prevent the formation of a clear opinion. This highlights the importance of the auditors' report in providing an accurate reflection of the audit process and its findings, contributing to the stakeholders' understanding of the financial statements' reliability. Therefore, the statement provided is true concerning the auditors' responsibility in their report on financial statements.