A standard audit report
A)states that a company has the right to select members of its board of directors.
B)serves as the accounting profession's seal of approval.
C)states whether a company will be profitable or not in the future.
D)serves as a guarantee that the financial statements are free of any errors.

Question

Quizplus · Accepted Answer

A standard audit report serves as the accounting profession's seal of approval, indicating that the financial statements have been reviewed by an independent auditor and are presented fairly in accordance with generally accepted accounting principles (GAAP). It does not guarantee future profitability or the right to select board members, nor does it provide a guarantee that the financial statements are entirely without error (although the auditor's opinion does indicate a reasonable level of assurance regarding their accuracy).

A Standard Audit Report