Which of the following is not an economic benefit of a financial statement audit?
A) access to capital markets
B) control and operational improvements
C) lower cost of capital
D) decreased inflation rates
E) deterrent to inefficiency and fraud

Question

Quizplus · Accepted Answer

Decreased inflation rates are not a direct economic benefit of a financial statement audit. Audits primarily enhance the reliability of financial statements for investors, creditors, and other stakeholders, which can lead to benefits such as access to capital markets, lower cost of capital, and deterrents to inefficiency and fraud. They may also indirectly help in control and operational improvements. However, influencing the overall inflation rates of an economy is not a direct consequence of financial statement audits.

Which of the Following Is Not an Economic Benefit of a Financial