The purpose of an audit is to
A) determine whether or not a company is a good investment.
B) comply with income tax regulations.
C) determine whether or not a company is a good credit risk.
D) ascertain that the financial statements follow Generally Accepted Accounting Principles (GAAP).

Question

Quizplus · Accepted Answer

The purpose of an audit is to provide assurance to stakeholders that the financial statements of a company are prepared in accordance with GAAP. The other choices may be secondary reasons for an audit, but they are not the primary purpose.

The Purpose of an Audit Is to