Question

Auditor Alfonso has gathered sufficient appropriate audit evidence, evaluated uncorrected misstatements, and completed the required communications with those charged with governance. His final step is to?

1) file the financial statements with the SEC.
2) shred the audit documentation.
3) prepare and issue the independent auditor's report.
4) schedule a meeting with the audit committee.

Answer 1

Auditor Alfonso's final step after gathering evidence and completing communications is to prepare and issue the independent auditor's report which serves as his professional opinion on the financial statements.

Step-by-step explanation:

Once Auditor Alfonso has gathered sufficient appropriate audit evidence, evaluated uncorrected misstatements, and completed the required communications with those charged with governance, his final step in the audit process is to prepare and issue the independent auditor's report. This report is vital as it provides an opinion on whether the financial statements are presented fairly in all material respects, in accordance with the applicable financial reporting framework. Filing financial statements with the SEC, shredding audit documentation, or scheduling a meeting with the audit committee are not the direct responsibilities of the auditor at this stage of the auditing process.