A financial statement audit
A) consists only of compliance testing of account balances.
B) has the objective of verifying financial statement figures to render a professional opinion of the financial statements.
C) has the objective of establishing the degree to which the internal control system can be relied upon.
D) None of these answers is correct.

Question

Quizplus · Accepted Answer

A financial statement audit has the primary objective of verifying financial statement figures to provide a professional opinion on whether the financial statements are fairly presented in all material respects, in accordance with the applicable financial reporting framework such as GAAP or IFRS. Compliance testing of account balances is just one part of the audit process, and the objective of establishing the reliability of the internal control system is part of an integrated audit that includes both financial statement and internal control audits.

A Financial Statement Audit