An examination of the financial statements of a business to ensure that they conform to generally accepted accounting principles is called:

Question

Quizplus · Accepted Answer

An audit is a thorough examination of a company's financial statements by an independent third-party accounting firm to ensure that the financial statements conform to generally accepted accounting principles. The audit provides assurance to stakeholders that the financial statements are reliable and accurate. A certification is a process of verifying that a specific product or service meets certain standards, while verification and validation refer to processes of ensuring that a product or service meets specific requirements or specifications.

An Examination of the Financial Statements of a Business to Ensure