The auditor's report:
A) guarantees the accuracy of financial statements in an absolute sense.
B) guarantees the quality of the reported earnings.
C) certifies that the generally accepted accounting principles were consistently applied.
D) certifies that future financial performance will meet specified standards.

Question

Quizplus · Accepted Answer

The auditor's report certifies that the financial statements of a company have been prepared in accordance with generally accepted accounting principles (GAAP) and that these principles have been consistently applied. It does not guarantee the absolute accuracy of financial statements, the quality of earnings, or future financial performance.

The Auditor's Report