Question

In a financial statement audit, the auditor
Select one:
a. determines whether the financial statements are stated in accordance with specified criteria
b. gathers evidence to determine whether the statements contain material errors or other misstatements
c. must have a thorough understanding of the entity and its environment
d. all of the above

Answer 1

d. all of the above
In a financial statement audit, the auditor evaluates whether the financial statements are presented in accordance with specified criteria, gathers evidence to identify material errors or other misstatements, and must have a comprehensive understanding of the entity and its operating environment to effectively carry out the audit.