What is the primary purpose of hiring a public accounting firm to examine the financial statements of the company?
A) To detect all accounting errors made by the accounting system and employees.
B) To provide credibility that the financial information conforms with international financial reporting standards in all material respects.
C) To assure no fraud has been committed by the company's management.
D) To detect fraud committed by employees.

Question

Quizplus · Accepted Answer

The primary purpose of hiring a public accounting firm to examine the financial statements of the company is to provide credibility that the financial information conforms with international financial reporting standards in all material respects. While detecting accounting errors and fraud are potential benefits of an audit, they are not the primary purpose. Additionally, it's important to note that auditors do not provide assurance that fraud has not occurred, only that the financial statements are fairly presented in accordance with accounting standards.

What Is the Primary Purpose of Hiring a Public Accounting