The correct answer is: B. Correcting errors and frauds.
An auditor is an independent person who is appointed to review the financial statements of a company or organization. The purpose of an audit is to provide assurance to users of the financial statements that the statements are free from material misstatement, whether due to error or fraud.
The auditor’s responsibilities include:
- Planning and performing the audit in accordance with generally accepted auditing standards (GAAS).
- Obtaining sufficient appropriate audit evidence to support the auditor’s opinion on the financial statements.
- Forming an opinion on the financial statements and expressing that opinion in the auditor’s report.
The auditor is not responsible for correcting errors or fraud that may be found during the audit. The responsibility for correcting errors and fraud rests with the management of the company or organization.
A. Checking errors and frauds: This is a function of an auditor. The auditor is responsible for obtaining sufficient appropriate audit evidence to support the auditor’s opinion on the financial statements. This evidence may include, but is not limited to, checking the accuracy of the financial statements, reviewing the company’s internal controls, and interviewing management and other employees.
B. Correcting errors and frauds: This is not a function of an auditor. The responsibility for correcting errors and fraud rests with the management of the company or organization.
C. Vouching with original documents: This is a function of an auditor. The auditor is responsible for vouching the financial statements with original documents. This means that the auditor should trace the information in the financial statements back to the original documents, such as invoices, receipts, and bank statements.
D. Preparing final accounts: This is not a function of an auditor. The responsibility for preparing the financial statements rests with the management of the company or organization.