The primary purpose of an audit is to:
A)add credibility to the financial statements.
B)assure investors that no errors have been made.
C)detect fraud.
D)assure creditors that they will be repaid.

Question

Quizplus · Accepted Answer

The primary purpose of an audit is to add credibility to the financial statements by providing assurance that they are presented fairly in all material aspects. While detecting fraud and assuring creditors may be benefits of an audit, they are not the primary purpose. Additionally, audits cannot guarantee the absence of all errors, only that the financial statements are presented fairly.

The Primary Purpose of an Audit Is To