An audit report is appropriate:
A) whenever a public accounting firm assists a client in preparing financial reports.
B) whenever a public accounting firm is associated with financial reports.
C) only when an audit is conducted.
D) none of the above

Question

Quizplus · Accepted Answer

An audit report is a formal opinion on the financial statements of an entity, provided by an independent auditor after examination of the entity's financial records and operations. Therefore, an audit report is only appropriate when an audit is conducted. Option A refers to a compilation or review report, while option B is too broad and vague.

An Audit Report Is Appropriate