The purpose of an audit is to provide_______.
A)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)internal auditors with an opinion by the independent auditor on whether the financial statements are presented fairly in accordance with an applicable financial reporting framework
C)management with assurance that they will be able to maximize profit and bonuses
D)absolute assurance that the financial statement conform to GAAP

Question

Quizplus · Accepted Answer

The purpose of an audit is to provide financial statement users, such as investors and creditors, with an opinion by an independent auditor on whether the financial statements are presented fairly in accordance with an applicable financial reporting framework. This gives users more confidence in the accuracy and reliability of the financial information presented in the statements. Internal auditors may also use the audit to assess the effectiveness of the company's internal controls and identify areas for improvement, but the primary purpose is to provide assurance to external users of the financial statements. The goal of an audit is to provide reasonable assurance, not absolute assurance, as it is not possible to examine every single transaction or piece of information.

The Purpose of an Audit Is to Provide_______