One of the conditions that give rise to a
demand for an external audit of financial
statements is expertise. Which of the
following best describes the meaning of
expertise as used in this context?
a. Auditors usually rely on the work of
an expert as a basis for evaluating
some assertions embodied in the
financial statements.
b. The readers of the financial statements
must possess the necessary expertise
to be able to understand the financial
statements.
c. Users usually lack the necessary
expertise to verify the reliability of
the financial information.
d. As experts, auditors are expected to
detect all material misstatements in the
financial statements
demand for an external audit of financial
statements is expertise. Which of the
following best describes the meaning of
expertise as used in this context?
a. Auditors usually rely on the work of
an expert as a basis for evaluating
some assertions embodied in the
financial statements.
b. The readers of the financial statements
must possess the necessary expertise
to be able to understand the financial
statements.
c. Users usually lack the necessary
expertise to verify the reliability of
the financial information.
d. As experts, auditors are expected to
detect all material misstatements in the
financial statements