The basic purpose of a financial statement audit is to
A) Detect fraud.
B) Examine individual transactions so that the auditor may certify as to their validity.
C) Provide assurance regarding whether the auditee's financial statements are fairly stated.
D) Assure the consistent application of correct accounting procedures.

Question

Quizplus · Accepted Answer

The basic purpose of a financial statement audit is to provide assurance regarding whether the auditee's financial statements are fairly stated. While detecting fraud and assuring the consistent application of correct accounting procedures are important aspects of an audit, they are not the primary purpose. Auditors do not typically examine individual transactions, but rather test a sample of transactions to gain reasonable assurance about the overall accuracy and validity of the financial statements.

The Basic Purpose of a Financial Statement Audit Is to