Which of the following statements is true concerning an auditor's responsibilities regarding financial statements?

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Which of the following statements is true concerning an auditor's responsibilities regarding financial statements?




Answer: An auditor may draft an entity's financial statements based on information from management's accounting system. (The independent auditor may make suggestions about the form or content of the financial statements or draft them, in whole or in part, based on information from management's accounting system. However, the auditor's responsibility for the financial statements (s)he has audited is confined to the expression of his or her opinion on them.)

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