Attitudes about Auditors. The following three statements are representative of the attitudes and opinions sometimes encountered by professional auditors.

1 An audit by an independent auditor is essentially negative and contributes to neither the gross national product nor the general wellbeing of society. The auditor does not create, but merely checks what someone else has done.

2 ‘Today's audit consists of testing only selected transactions. This is dangerous because testing depends upon the auditor's judgement, which may be defective. An audit can be relied on only if every transaction is verified.

3 One should read the footnotes to financial statements, even though they are often presented in technical language and are incomprehensible. The auditor may reduce exposure to third-party liability by stating something in the footnotes that contradicts completely what has been presented in the balance sheet or income statement.

Required Evaluate each of the above statements and indicate A. Areas of agreement with the statement, if any.

B. Areas of misconception, incompleteness or fallacious reasoning included in the statement, if any.