The Auditor's Responsibility, as Expressly Stated in the Audit Report

question 41

Multiple Choice

The auditor's responsibility, as expressly stated in the audit report, is to _______.

• A)express an opinion on the financial statements
• B)take responsibility for the financial statements
• C)make it clear that responsibility for the financial statements rests with the internal audit function
• D)make it clear that responsibility for the financial statements rests with the client's legal counsel

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Definitions:

Ability-to-pay Principle

A taxation principle suggesting that taxes should be levied according to an individual's or entity's ability to pay, typically measured by income or wealth.

Ability-to-pay Principle

A tax principle stating that taxes should be levied according to an individual's or entity’s capacity to pay, typically measured by income or wealth.

Constitutional

Relating to the system of beliefs and laws that governs the organization and operation of a state or organization, typically documented in a written constitution.