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When the auditor concludes that the financial statements are materially misstated and are not prepared in...

When the auditor concludes that the financial statements are materially misstated and are not prepared in accordance with GAAP, should the auditor revise the financial statements since they are there for the shareholders? Why or why not?

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Answer #1

Prepration of financial statement is the task of management and auditor is responisble for only presenting opinion on the true and fair view of financial statements.

So if auditor concludes that the financial statements are materially misstated and are not prepared in accordance with GAAP auditor issue a qualified aduit report and a modified opinion and does not revise financial statement as preparation of financial statement is responsibility of management

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