The purpose of an audit is to _______.
A)provide financial statement users with an opinion by an independent auditor on whether the financial statements are presented fairly in accordance with an applicable financial reporting framework
B)provide internal auditors with an opinion by the external auditor on whether the financial statements are presented fairly in accordance with an applicable financial reporting framework
C)provide absolute assurance that the financial statements conform to Generally Accepted Accounting Principles (GAAP)
D)help management ensure yearly bonuses will be received

Question

Quizplus · Accepted Answer

The purpose of an audit is to provide financial statement users with an opinion by an independent auditor on whether the financial statements are presented fairly in accordance with an applicable financial reporting framework. This opinion helps users make informed decisions about the company's financial health and performance. Internal auditors may also be involved in the audit process, but ultimately the goal is to provide assurance to external stakeholders. The audit does not provide absolute assurance, as there is always a risk of error or fraud that may go undetected. The purpose of an audit is not to help management ensure yearly bonuses will be received, as this would be a conflict of interest and compromise the independence of the auditor.

The Purpose of an Audit Is to _______