Audits
A) are an assurance service, but not an attestation service.
B) are designed to provide absolute assurance that the financial statements are free of material misstatement.
C) are required for publicly traded companies in the United States.
D) do not require the auditor to express their opinion in a written report.

Question

Quizplus · Accepted Answer

Audits are required for publicly traded companies in the United States according to the Securities and Exchange Commission (SEC). Option A is incorrect as audits are both an assurance and an attestation service. Option B is incorrect as audits provide reasonable assurance, not absolute assurance, that the financial statements are free of material misstatement. Option D is incorrect as the auditor is required to express their opinion in a written report.