Auditing and Attestation- Certified Public Accountant (CPA) Practice Exam -

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Where is the auditor's responsibility to express an opinion on financial statements explicitly represented?

In the Introductory paragraph of the auditor's report.
In the Auditor's Responsibility paragraph.
In an emphasis-of-matter paragraph.
In the Other-matter paragraph.

The correct answer is: In the Auditor's Responsibility paragraph.

The auditor's responsibility to express an opinion on financial statements is explicitly represented in the Auditor's Responsibility paragraph of the auditor's report. This section outlines the auditor's duties regarding the evaluation of the financial statements and clearly states the nature of the audit process, emphasizing that it is conducted according to the applicable auditing standards. This paragraph usually includes a description of what the audit entails, such as obtaining reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error. It also highlights that the auditor's opinion is based on the procedures performed during the audit, thereby reinforcing the scope of the auditor's responsibility. In contrast, the Introductory paragraph merely identifies the financial statements audited and states the auditor's opinion without detailing the auditor’s responsibilities. Emphasis-of-matter and Other-matter paragraphs highlight particular issues or circumstances but do not specifically convey the auditor’s overall responsibility for expressing an opinion on the entirety of the financial statements.