The correct answer is C. The auditor is not responsible for the detection and prevention of frauds and errors in financial statements. The auditor’s responsibility is to express an opinion on the financial statements based on the audit evidence obtained. The auditor does not have a responsibility to detect all frauds and errors, but is required to design and perform audit procedures to obtain reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error.
Option A is true. The auditor should express an opinion on the financial statements. The auditor’s opinion is based on the audit evidence obtained and should state whether the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework.
Option B is true. The auditor’s opinion is no guarantee to future viability of business. The auditor’s opinion is only an opinion on the financial statements as of the date of the audit report. The auditor does not provide any assurance on the future viability of the business.
Option D is true. The auditor should examine whether recognised accounting principle have been consistently applied in the preparation of the financial statements. The auditor should also evaluate whether the financial statements are prepared in accordance with the applicable financial reporting framework.