Why is the CPA's role in performing audits important to our economic system?

Question

Quizplus · Accepted Answer

The audit of financial statements helps investors and other stakeholders to know that they can rely on the information presented in the financial statements. This assurance is important for the smooth functioning of our economic system, as it promotes transparency and trust in financial reporting. It also helps to prevent fraud and misrepresentation, which could have detrimental effects on the financial markets and our overall economy. While auditors may provide some financial advice and issue reports on the accuracy of certain transactions, their primary responsibility is to provide assurance on the accuracy and reliability of financial statements as a whole.

Why Is the CPA's Role in Performing Audits Important to Our