The purpose of the financial statement audit is to express an opinion on
A)the accuracy of the financial statements.
B)the balance sheet and income statement.
C)the fairness of the financial statements.
D)the annual report.

Question

Quizplus · Accepted Answer

The purpose of the financial statement audit is to express an opinion on the fairness of the financial statements, including whether they are presented in accordance with generally accepted accounting principles (GAAP) and whether they give a true and fair view of the organization's financial performance, position, and cash flows. While accuracy is important, the focus of the audit is on whether the financial statements are a fair representation of the organization's financial position, and not on guaranteeing absolute accuracy. The audit does not specifically focus on the balance sheet and income statement, though these are important parts of the financial statements. The annual report is a broader document that includes information beyond the financial statements, and is not specifically audited in the same way as the financial statements themselves.

The Purpose of the Financial Statement Audit Is to Express