Which of the following is a characteristic of an audit of historical financial statements?
A)It provides limited assurance that no material modifications need to be made to the financial statements.
B)It expresses an opinion on the fair presentation of the financial statements.
C)It is the same as an examination of internal controls.
D)It is broader than a review engagement.

Question

Quizplus · Accepted Answer

An audit of historical financial statements expresses an opinion on the fair presentation of the financial statements, providing reasonable assurance that they are free of material misstatements. This is different from a review engagement, which provides limited assurance and is narrower in scope. It is also not the same as an examination of internal controls, which focuses on the effectiveness of a company's internal controls over financial reporting rather than the accuracy of the financial statements themselves.

Which of the Following Is a Characteristic of an Audit