Question

Which of the following statements about the study of auditing is NOT true?

A. The study of auditing can be valuable to future accountants and business decision makers whether or not they plan to become auditors.
B. The study of auditing focuses on learning the analytical and logical skills necessary to evaluate the relevance and reliability of information.
C. The study of auditing focuses on learning the rules, techniques, and computations required to analyze financial statements.
D. The study of auditing begins with the understanding of a coherent logical framework and techniques useful for gathering and analyzing evidence about others' assertions.

Answer 1

The incorrect statement about the study of auditing is that it focuses solely on rules and computational analysis of financial statements, rather than the broader skill set involving analytical and logical skills as well as understanding of systems and controls.

Step-by-step explanation:

The statement about the study of auditing that is NOT true is C: The study of auditing focuses on learning the rules, techniques, and computations required to analyze financial statements. While auditing does involve a thorough understanding of financial statements, it is more about evaluating the systems and controls in place for creating those statements, ensuring they are free from material misstatement and fraud.

Auditing entails learning a combination of analytical and logical skills to assess the relevance and reliability of information. It also involves understanding a logical framework and techniques which are used for collecting and analyzing evidence about assertions made by others. This proves valuable not just for future auditors but also for accountants and business decision makers. It's a field that requires much more than just technical computations, as stated in statement C, which unduly narrows the scope of auditing practice.