plz tel me the answer

Plz provide me complete answer of the following question( PCC-Auditing):

'An opinion expressed by the auditior is neither an assurance as to the future viability of the enterprise nor the efficiency or effectiveness with which management has conducted the affairs of the enterprise'.Comment.

Replies (1)

"Neither an assurance as to the future viability of the enterprise"

That means: The opinion expressed by the auditor in the audit report dose not assure the user of financial statement (bankers, govt, shareholders, creditors etc)that the organization will prosper in future, i.e it will continue to hold good share in the market....

 

"Efficiency or effectiveness with which management has conducted the affairs of the enterprise"

That means: Auditors opinion in audit report is not an assurance to the user of financial statement (bankers, govt, shareholders, creditors etc) that the management has carried on their duty efficiently, there may be frauds & errors in the organization which the auditor is not aware of.

hence auditors opinion cannot be taken as an assurance....

 

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