What is Auditor's responsibilities section?
In short
The auditor's responsibilities section of the report explains that the auditor's objective is reasonable assurance, describes the use of professional judgment and skepticism, and summarizes the work on risks, internal control, accounting estimates and going concern.
Key takeaways
- It states that reasonable assurance is a high level of assurance but not absolute.
- It explains that the risk of not detecting fraud is higher than for error.
- It notes required communications with those charged with governance.
Where it's tested
AUD: Audit Reports — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
An auditor is unable to observe the physical inventory count or satisfy themselves through alternative procedures, and inventory represents 60% of total assets. What opinion is appropriate?