The purpose of an audit is to:
A)Give shareholders a guarantee that the financial statements are correct
B)Give stakeholders a guarantee that the financial statements are correct
C)Enhance the degree of confidence of intended users in the financial report
D)None of the options are correct

Question

Quizplus · Accepted Answer

The purpose of an audit is to enhance the degree of confidence of intended users in the financial report by providing an independent and objective assessment of the financial statements. It is not a guarantee to shareholders or stakeholders that the financial statements are correct, as the auditor only expresses an opinion on whether the financial statements are presented fairly in all material respects. Therefore, choice C is the best answer as it accurately represents the purpose of an audit.

The Purpose of an Audit Is To