Question

Auditors have a responsibility to evaluate whether financial statements properly reflect all known events through the ________.

Answer 1

Auditors evaluate whether financial statements properly reflect all known events through financial statement auditing.

Step-by-step explanation:

Auditors have a responsibility to evaluate whether financial statements properly reflect all known events through the process of financial statement auditing.

Financial statement auditing involves examining an organization's financial records and statements to ensure their accuracy and reliability. Auditors review various documents and evidence, such as bank statements, transaction records, and supporting documents, to assess the fairness and integrity of the financial statements.

By performing substantive testing and gathering sufficient appropriate evidence, auditors can provide an opinion on the financial statements' compliance with applicable accounting standards and regulatory requirements.