One justification of audit is that it makes financial statements more reliable and,because it is more reliable, it is more useful to decision makers. This is an example of:
A) The agency theory hypothesis
B) The information hypothesis
C) The true and fair view hypothesis
D) The insurance hypothesis

Question

Quizplus · Accepted Answer

The information hypothesis suggests that audited financial statements provide more reliable information, which is useful for decision-making.

One Justification of Audit Is That It Makes Financial Statements