Valuation of assets is the responsibility of the management
The auditor can rely on a certificate issued by an authorized valuationer as to the valuation of assets in the balance sheet
The auditor should value the asset as per generally accepted accounting principle
Valuation is no part of auditor's duty
Answer is Right!
Answer is Wrong!
The correct answer is D. Valuation is no part of auditor’s duty.
The auditor’s responsibility is to express an opinion on the financial statements as a whole, and not on the valuation of individual assets. The auditor should obtain sufficient appropriate audit evidence to support the valuation of assets, but the responsibility for the valuation rests with management.
The auditor can rely on a certificate issued by an authorized valuationer as to the valuation of assets in the balance sheet, but the auditor should still satisfy himself that the valuation is reasonable.
The auditor should value the asset as per generally accepted accounting principle, but the auditor should not be responsible for the valuation itself.