Question

In order to express an opinion, the auditor obtains a level of assurance about whether the financial statements are free from material misstatement, whether due to error or fraud. Which of the following is required of the auditor in obtaining this level of assurance?

Answer 1

To express an opinion, the auditor must plan, gather evidence, evaluate policies, assess risk, and form an opinion.

Step-by-step explanation:

Obtaining a level of assurance about whether financial statements are free from material misstatement involves several requirements for the auditor:

1. Planning and performing the audit with professional skepticism
2. Evidence gathering through procedures such as inspection, observation, and inquiry
3. Evaluating the appropriateness of accounting policies and the reasonableness of financial statement presentation
4. Assessing the risk of material misstatement and designing procedures to address those risks
5. Forming an opinion based on the audit evidence obtained