Which statement best describes the duty to ensure sufficient information is obtained for the audit?

Which statement best describes the duty to ensure sufficient information is obtained for the audit?

• A. The auditor must obtain adequate information from management and others to plan and complete the audit
• B. The auditor must prepare the financial statements
• C. The auditor must implement accounting policies
• D. The auditor must decide on corporate strategy

Answer: (A)

The key idea is that the auditor must gather enough reliable information from management and others to properly plan and carry out the audit. Without sufficient information, the auditor can’t accurately assess risks or design and perform appropriate procedures to test the financial statements. Information from management and others—such as documentation, records, and explanations—provides the basis for forming an evidence-based opinion. The other duties described are not the auditor’s; preparing financial statements, implementing accounting policies, and deciding corporate strategy are management or governance responsibilities. So the statement about obtaining adequate information to plan and complete the audit best reflects the required duty.

The key idea is that the auditor must gather enough reliable information from management and others to properly plan and carry out the audit. Without sufficient information, the auditor can’t accurately assess risks or design and perform appropriate procedures to test the financial statements. Information from management and others—such as documentation, records, and explanations—provides the basis for forming an evidence-based opinion.

The other duties described are not the auditor’s; preparing financial statements, implementing accounting policies, and deciding corporate strategy are management or governance responsibilities. So the statement about obtaining adequate information to plan and complete the audit best reflects the required duty.